Brace for “Marathon Negotiations” Between AMCU, Platinum Miners

Bloomberg reported that tomorrow, South Africa’s labor minister, Mildred Oliphant, will take charge of negotiations between the country’s Association of Mineworkers and Construction Union (AMCU) and major miners Anglo American Platinum Ltd. (OTCMKTS:AGPPY), Lonmin plc (LSE:LMI) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY).

The move follows the news that 70,000 employees have started striking at platinum mines in the African nation. AMCU President Joseph Mathunjwa told Bloomberg that “marathon negotiations” are in store.

As quoted in the market news:

The AMCU, which is the biggest representative of workers at the mines, says it will maintain the walkout until its demand that wages for the lowest-paid entry-level miners be more than doubled to 12,500 rand ($1,150) a month is met. South Africa’s inflation rate was 5.4 percent in December.

‘We welcome the efforts from government to mediate and close the difference between the parties,’ said Johan Theron, a spokesman for Impala. ‘I don’t think we’ve ever dealt with an impasse that is what it’s been thus far.’

Click here to read the full Bloomberg report.