South Africa’s AMCU Calls for Strikes at Amplats, Lonmin and Implats

Reuters reported that members of South Africa’s Association of Mineworkers and Construction Workers (AMCU) have voted in favor of going on strike at Anglo American Platinum Ltd. (OTCMKTS:AGPPY), Lonmin plc (LSE:LMI) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY).
Those three companies are the world’s top producers of platinum, and the strikes are expected to disrupt investors’ confidence in South Africa; they will also likely create difficulties for President Jacob Zuma as the country’s general election approaches.
As quoted in the market news:

At Amplats and Lonmin, the union is seeking a minimum monthly wage of 12,500 rand ($1,200) for entry-level workers – more than double current levels, under the populist battle cry of a ‘living wage’. At Implats the union scaled back its demand late last year to just over 8,500 rand.
Companies have said they can ill afford steep increases as power and other costs soar against the backdrop of depressed prices for the white metal used in emissions-capping catalytic converters in automobiles.
Platinum’s spot price shed 11 percent last year and is about 40 percent down from record peaks scaled in 2008.

Click here to read the full Reuters report.