Bloomberg reported that Anglo American Platinum Ltd. (OTCMKTS:AGPPY) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY), whose workers are striking as the companies engage in wage negotiations with South Africa’s Association of Mineworkers and Construction Union (AMCU), have enough material stockpiled to supply customers for six to eight weeks.
Lonmin plc (LSE:LMI), whose workers are also on strike as it negotiates with the AMCU, opted not to reveal how long it will be able to meet demand.
As quoted in the market news:
;These strikes have been coming for some time and the companies have been preparing for them for 12 months plus,’ said Justin Froneman, a Johannesburg-based equity analyst at SBG Securities Ltd., the securities unit of Africa’s largest lender. ‘They’re ready for this to drag out for a long time.’
The strike is costing the companies 9,900 ounces a day in lost production, valued at about $14.2 million at current prices. At least 70,000 members of the Association of Mineworkers and Construction Union began striking Jan. 23 over pay, including demands that entry level wages be more than doubled to 12,500 rand ($1,127) a month.