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Mineweb reported that the tension between Northam Platinum Ltd. (OTCMKTS:NMPNY) and South Africa’s National Union of Mineworkers (NUM) has been increasing since members of the union went on strike at Northam’s operations seven weeks ago.
Mineweb reported that the tension between Northam Platinum Ltd. (OTCMKTS:NMPNY) and South Africa’s National Union of Mineworkers (NUM) has been increasing since members of the union went on strike at Northam’s operations seven weeks ago.
Most recently, the NUM issued a press release titled “Northam Platinum on the brink of collapse as workers strike through Christmas.” In response, Northam has taken legal action against the union, demanding an apology and retraction of the statement.
As quoted in the market news:
Lesiba Seshoka, NUM spokesperson, wrote in Friday’s release that ‘the seven week strike action has brought the Zonderheide Northam Platinum mine to its knees.’
According to Seshoka the company is on the edge of collapse due to the incompetence of management and poor leadership as well as the threat by investors to pull out.
‘We have said to the company, 50% of these demands must be met in the current financial year and the other 50% in the next. The company is simply arrogant,’ says NUM chief negotiator at Northam Platinum, Ecliff Tantsi.
Northam, however, remains resolute in its stance on the matter, saying it refuses to ‘give in’ to the NUM’s financial demands.