No need for investors to panic

Cape Town - There is no need for foreign investors to worry over planned strikes in the platinum and gold mining sectors, said the government, according to the SABC.

The Association of Mineworkers and Construction Union (Amcu) said it expected 100 000 workers at Anglo Platinum (Amplats) [JSE:AMS], Impala Platinum (Implats) [JSE:IMP] and Lonmin [JSE:LON] to down tools from Thursday.

The gold sector will experience strikes at the Driefontein mine of Sibanye Gold [JSE:SGL], the Kusaselethu and Masimong mines of Harmony Gold [JSE:HAR], and at all of the operations of AngloGold Ashanti [JSE:ANG].

However, Kgalema Motlanthe's spokesperson Thabo Masebe said the mining sector is not shrouded by a sense of instability.

He told the broadcaster that foreign investors invest in the country knowing that South Africa has laws allowing workers to strike for better wages.

Meanwhile, Finance Minister Pravin Gordhan cautioned that looming strikes will deal a blow to investor confidence as the rand nears a five-year low, reported Reuters on Monday.

He urged stakeholders in the platinum industry to continue with negotiations.

North West premier Thandi Modise also appealed to Amcu to protect the rights of non-striking workers.

"We respect Amcu’s choice to exercise its constitutional right to strike having complied with provisions of the Labour Relations Act," she said in a statement on Monday.

"We would in the same breath also appreciate if the union can ensure that the rights of non-striking workers are respected and that violence is avoided at all costs during the planned strikes."

Amcu is demanding an entry-level monthly salary of R12 500.

Source: www.fin24.com

<back