• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    platinum investing

    South African Platinum Strike “Officially Over”

    Charlotte McLeod
    Jun. 23, 2014 05:00PM PST
    Precious Metals

    Major miners Amplats, Implats and Lonmin agreed to many of the AMCU’s demands.

    A five-month strike at the South African operations of major platinum miners Anglo American Platinum (OTCMKTS:AGPPY), Lonmin (LSE:LMI) and Impala Platinum Holdings (OTCMKTS:IMPUY) is “officially over,” Joseph Mathunjwa, leader of the Association of Mineworkers and Construction Union (AMCU), said today. 

    According to Bloomberg, the deal, which is to be signed tomorrow, “includes annual increases of 1,000 rand a month for the lowest-paid underground workers for the first two years of the agreement and 950 rand in the third year.” Current pay for those workers is between 5,000 and 6,000 rand per month.

    Initially, the AMCU had demanded that basic wages be immediately be more than doubled to 12,500 rand a month, Reuters states.

    The companies involved in the strike have not yet commented, CBC News notes, but AMCU members are certainly pleased with its resolution. ”[T]ens of thousands of workers packed into Rustenburg’s Royal Bafokeng Stadium” greeted Mathunjwa’s statement with “unrestrained jubilation,” as per Reuters.

    Mathunjwa seems happy as well. He told those assembled, “[t]oday we are creating a historic day in the mining sector. The platinum sector will never be the same. What other unions have failed to do over many years, you have achieved in five months.”

    That said, it won’t be all sunshine and roses moving forward.

    South Africa’s platinum industry is now headed for a “painful restructuring,” Reuters notes, “with job cuts almost inevitable.” Indeed, Elize Strydom, the chief negotiator of the country’s Chamber of Mines, is quoted by Bloomberg as saying, “[t]he hard work starts now. It’s going to take time for production to get to levels prior to the strike. I think we are still going to have to do a lot of work to convince the world and investors that platinum is a good commodity to invest in.”

    The good news is that thus far, platinum and palladium prices don’t seem to have been hurt by the announcement. The Wall Street Journal said that platinum for July delivery ended today at $1,456.60 per ounce, down just 0.1 percent, while palladium for September delivery rose 0.1 percent to close at $822.65 per ounce.

    Even more encouragingly, the news outlet quotes Bill O’Neill, a principal at Logic Advisors, as saying, “[t]he global demand picture for these metals is still quite excellent, and supplies are low. Longer term, the fundamentals are there for a continued rally.”

     

    Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

    Related reading: 

    Platinum Price Unmoved as South African Strikes Enter Week 11

    All Talk and No Progress as South African Platinum Miners Meet with Unions

    Platinum Takes a Break from Rising Prices, Strike Continues

    impala platinumplatinum investinganglo american platinum
    The Conversation (0)

    Go Deeper

    AI Powered

    Palladium: The Forgotten Precious Metal Has Out Shown Gold and Silver

    Silver Takes a Fall; “Rallies Should Fade,” Says Standard Bank

    Latest News

    Apollo Files NI 43-101 Technical Report for the Calico Silver Project Updated Mineral Resource Estimate

    NevGold Discovers High-Grade Oxide Antimony "Bullet Zone" From Surface with 2025 Step-Out Drilling: 14.90 g/t AuEq Over 4.6 Meters Within 2.42 g/t AuEq Over 53.3 Meters at Limo Butte, Nevada

    Maritime Ships First Hammerdown Feed to the Pine Cove Mill

    Quarterly Activities/Appendix 5B Cash Flow Report

    Prismo Reports High Grade Gold along with Silver, Copper and Zinc Mineralization at Ripsey Mine

    More News

    Outlook Reports world

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    GoldMoney Inc.

    XAU:CA

    Metallica Metals Corp Com

    MM:CNX

    Champion Bear Resources Ltd.

    CBA:CA

    Braveheart Resources Inc.

    BHT:CA

    Mineworx Technologies Ltd.

    MWX:CA

    St-Georges Eco-Mining Corp

    SX:CNX
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES