South African platinum miners end strike


South Africa's AMCU says its members agreed to a wage settlement that will end the country's longest-ever strike which has cost the mining industry 1.1M oz. in lost platinum production and helped shrink the country's economy by 0.6% in Q1 from a year earlier.

The world's three-biggest platinum producers - Amplats (AAUKF, AAUKY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - say they each lost roughly a third of their annual production, and analysts say it will take at least three months to get production back to pre-strike levels after mines have been mostly idle for the past several months.

Platinum prices fell 1.1% to $1,437.70/oz. on the news.

ETFs: PALL, PPLT, SPPP, PTM, PGM

Comments (2)
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    The strike had its intended effect of cutting reserves back to only a few month's supply.
    23 Jun 2014, 12:56 PM Reply Like
  • Jalb
    , contributor
    Comments (140) | Send Message
     
    How long will it take for the wage increase to compensate for the loss of wages during the strike?
    Second question - how long will it take for the increase over what the employers would have offered to avoid a strike compensate for the loss of the higher wages?
    Third question - what is the period between wage negotiations?
    29 Jun 2014, 05:24 PM Reply Like
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