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The strike stricken platinum producers' shares rally as talks get underway

by , 21 May 2014

This morning, the Association of Mineworkers and Construction Union (AMCU) and the world's top three platinum producers resumed talks to try and bring an end to the near four month long strike. The market took the talks as a hint that the strike could come to an end soon with two of the producers rallying. Let's take a closer look at what's going on…

New wage talks began this morning

At 10am this morning, “a new round of wage talks” kicked off, reports Mining Weekly. A Labour Court judge is presiding over talks at an undisclosed location.

Before the talks began, the AMCU told Mining Weekly that “it was ‘optimistic’ about the potential outcome”.

The treasurer of the AMCU, Jimmy Gama, said they hoped “the new talks might lead to some kind of agreement with the employers,” says iAfrica.

This Friday marks four months to the day since members of the AMCU downed tools at Anglo American Platinum, Lonmin and Impala Platinum.

The AMCU wants R12,500 a month as a basic salary, says Fin24. The platinum producers’ latest offer was for R12,500 a month by July 2017. But that included allowances and bonuses.

At the end of the first day of renewed talks, Charmane Russel, who represents the platinum producers, said they weren’t “going to disclose any feedback during the talks,” reports Fin24.

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Shares in Lonmin rose 7.5%

Investors welcomed the new wage talks which could bring “an end to South Africa’s longest and costliest mining strike,” says IOL. “Anglo American Platinum rose 1.6%” today to R469.50. Lonmin soared “7.5% to R44.28”.

With talks expected to last a minimum of three days, it could be the end of the week before further news emerges.

The strike stricken platinum producers' shares rally as talks get underway
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