Folks, the South African mining industry is boiling. Production is declining and costs soaring! So that means .... it will be ANOTHER GREAT WEEK FOR US PPLT/PALL/SWC/ PAL holders! Unless ... African strike fevor spreads to Canada!
FROM THE SOUTH AFRCIAN WIRES SUNDAY 09/06/12:
Implats miners demand another increase
Johannesburg - Monday is D-Day for the London-registered Lonmin [JSE:LON] platinum mine. It hopes workers will report for duty in the fourth week of a violent strike for higher wages that has killed 44 people and has exposed the yawning gap between the elite of high-flying millionaire mine owners and workers who live in tin shacks without electricity or water.
If workers do not return Monday, Lonmin must start shutting down shafts, Peter Major, head of mining and resources for Cadiz Corporate Solutions, was quoted as saying in South Africa's Independent Online news site.
"Financially it looks really bad, and it is really bad," Cadiz said.
Lonmin, whose shares have lost nearly a quarter of their value during the strike, has said it is negotiating with its banks to reschedule debts that fall due at the end of September.
Wildcat strikes and protests spread to two gold mines last week, where they were quickly resolved, but predictions South Africa is in for more labor unrest have shaken investor confidence.
On Sunday, Impala Platinum Holdings [JSE:IMP] mine spokesperson Johan Theron reported its 15 000-plus workers are demanding another 10% pay rise.
Theron told The Associated Press that the company already has paid a 10% salary increase in April, two months earlier than agreed.
"We've just received another request from the interim workers' committee, now asking again for 10%," he said.