http://futures.tradingcharts.com/news/futures/DJ_UPDATE__AngloGold_Shuts_South_Africa_Operations_Due_to_Strikes_186239353.html
LONDON--South Africa's biggest gold
producer, AngloGold Ashanti Ltd. (ANG.JO), Wednesday shut down its
operations after a strike that began last week spread to more mines.
Workers at the West Wits and most at the Vaal River Region's
operations joined those at Kopanang, who embarked on an unprotected work
stoppage Sept. 20, the company said early Wednesday.
Miners across South Africa's major mines have recently embarked on illegal strikes, which started with one at platinum
producer Lonmin PLC (LMI.LN) Aug. 10. After the Lonmin strike--which
resulted in 46 deaths--was resolved earlier this month with a 11%-22%
pay hike, other miners have followed suit in hopes of securing similar
increases.
The strikes are straining already tight balance sheets for many miners, particularly in the platinum sector, and is now showing signs of spreading to other sectors, including gold and coal.
Gold Fields Ltd. (GFI) said Tuesday an illegal strike has hit
another of its mines, while four of Anglo American Platinum Ltd.'s
(AMS.JO) operations are shut due to a strike. Coal of Africa Ltd.
(CZA.AU) also said Tuesday that it stopped coal production at its
Mooiplaats Colliery after workers went on strike following the rejection
of a proposal to raise salaries by 22%.
AngloGold said it negotiates wages through a bargaining council
that includes all gold-mining companies and unions. Currently the gold
sector is in the middle of a two-year wage agreement. Gold Fields said
last week it wouldn't entertain a wage rise outside the structures of
the bargaining council.
Anglo Platinum has started talks with its striking workers Tuesday through a government labor mediator.
To tackle the spreading unrest, the Chamber of Mines, unions and
some representatives from the departments of minerals and labor have
been meeting to try and resolve the wage demands. The strikes have cut
vital revenue to government budgets.
"Discussions are being held with representative trade unions on
an industry-wide basis through the Chamber of Mines. No formal demands
have yet been presented to management by the striking workers,"
AngloGold said.
AngloGold Ashanti's South African operations accounted for
approximately 32% of total group production during the first half of the
year. Approximately 35,000 people are employed across AngloGold
Ashanti's South African
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