Mines strike ac­tion takes shine off Exxaro shares

The Mercury - - NEWS - Sizwe Dlamini

THE STRIKE ac­tion at Exxaro Re­sources’ Grootegeluk Coal Mine in Lepha­lale and Leeuw­pan Coal Mine in Del­mas sank the miner’s shares more than 5 per­cent, the most in three months.

The minework­ers’ strike stems from wage in­crease de­mands by the Na­tional Union of Minework­ers (NUM) where the union is de­mand­ing a raise of 10per­cent.

NUM deputy gen­eral sec­re­tary Wil­liam Mabapa con­firmed that the strike had started yes­ter­day morn­ing.

Mabapa said: “The union de­mands a wage in­crease of 10 per­cent, ser­vice in­cre­ment of 0.5 per­cent that is given to other em­ploy­ees and de­nied to other em­ploy­ees, hous­ing in­crease of 10 per­cent or R5 000, a standby al­lowance of 10 per­cent, fam­ily re­spon­si­bil­ity leave of eight days, and a long-ser­vice award of 15 years with one Kruger­rand.”

Exxaro also con­firmed that NUM had ob­tained a strike cer­tifi­cate and had given no­tice of their in­ten­tion to em­bark on strike ac­tion from 6am yes­ter­day.

Exxaro ex­ec­u­tive head: stake­holder af­fairs, Mzila Mthen­jane, said: “We’ve noted the de­ci­sion by NUM to is­sue a strike no­tice.

“We con­tinue dis­cus­sions with NUM in or­der to re­solve and reach an agree­ment sooner to min­imise the im­pact on em­ploy­ees”.

Mthen­jane said ne­go­ti­a­tions with Sol­i­dar­ity – the other trade union recog­nised for col­lec­tive bar­gain­ing – were con­tin­u­ing as they had not de­clared a dis­pute.

He said NUM and the JSElisted min­ing com­pany had agreed to meet to­day to con­tinue with ne­go­ti­a­tions.

The black-em­pow­ered di­ver­si­fied min­ing com­pany sup­plies state-owned power util­ity Eskom, other do­mes­tic mar­kets as well as the ex­port mar­kets. The strike is ex­pected to have a sig­nif­i­cant im­pact on the com­pa­nies’ sup­ply to Eskom and its var­i­ous mar­kets.

Among min­ing stocks, Im­pala Plat­inum dropped 7.45per­cent, Sibanye Gold de­clined 4.03 per­cent, Lon­min fell 3.58 per­cent.

NUM said it had sub­mit­ted wage de­mands on April 13 and en­gaged with the com­pany un­til Septem­ber 6.

Exxaro shares plunged 5.10 per­cent on the JSE yes­ter­day to close at R119.

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