OREANDA-NEWS.   Anglo American Platinum Limited (“Anglo American Platinum” or “the Company”) confirms that talks between the platinum sector and the Association of Mineworkers and Construction Union (“AMCU”) that have been facilitated by the Commission for Conciliation Mediation and Arbitration (“CCMA”) have been suspended indefinitely to allow stakeholders time to reflect the current offer.

Anglo American Platinum notes the revised AMCU wage demand to achieve a R12, 500 basic salary for the lowest paid workers over a period of four years. This revised wage demand translates into an average annual increase of 29% and remains unaffordable. The Company maintains that AMCU’s revised offer remains significantly above inflation and a further increase is not sustainable.

Anglo American Platinum’s current offer takes into consideration the prevailing industry conditions and the sustainability of the company. The offer is as follows:

Year 1: 9.0% for A-level (the lowest paid employees),
8.5% for B-level and 7.5% for C-level
Year 2: 8.0% for A-level, 7.5% for B-level and 7.0% for C-level
Year 3: 7.5% for A-level, 7.5% for B-level and 7.0% for C-level
These increases are already significantly above the current 5.4% inflation rate. The Company remains of the view that the current offer is fair and reasonable, and therefore encourages AMCU to accept the offer.

Chris Griffith, CEO of Anglo American Platinum said “Anglo American Platinum is discouraged by the turn of events at the CCMA. We have been diligent and transparent in engaging all our stakeholders on the financial position of the Company, a position which led to the restructuring of the business in 2013. At the CCMA, my team of specialists has been ensuring that AMCU is apprised of what is achievable and sustainable to preserve jobs. We are hopeful though that AMCU will come to recognize and appreciate the realities of the company’s position and will work towards a solution that will benefit its members. We remain open to further engagements to help bring the strike to an end.”

The industrial action at Anglo American Platinum’s Rustenburg, Union and Amandelbult operations has entered into its seventh week, and the Company has lost approximately 4,000 platinum ounces of daily production, translating into R100million of revenue value per day. All the Company’s Process operations, Mogalakwena mine and the majority of JV operations continue to operate normally.

Anglo American Platinum remains in constant communication with all stakeholders to ensure they remain fully informed of the situation. The situation on the ground is calm and the Company continues to encourage all employees participating in the strike to respect their fellow colleagues’ right to work.

Anglo American Platinum thanks all stakeholders involved in the facilitation of the wage negotiations to date including the Government, the CCMA, and our fellow platinum producers, for their efforts in trying to establish a sustainable solution for the industry.