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Aquarius, NUM reach Kroondal wage agreement

25th June 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Aquarius Platinum has reached a wage agreement with the National Union of Mineworkers (NUM) regarding its members who are employed at the Kroondal mine.

The mine employs about 8 120 people, including contractors. The NUM represents the majority of the mine’s Category B semiskilled workforce.

Aquarius and the NUM agreed on an increase that slightly exceeds the increase in the cost of living, as measured by the inflation rate.

The one-year wage deal would come into effect on July 1.

Negotiations in relation to the 970 skilled or Category A employees, will start in the coming weeks.

Liberum Capital commented that this was a great result and a surprise to the upside for Aquarius, which, if replicated across the broader industry, could result in a long-overdue outperformance.

"The negotiations have been concluded in a positive manner with both NUM and the South African government, which bodes well for the industry, and specifically for negotiations going forward. Nevertheless, we add a note of caution in regard to ongoing Association of Mineworkers and Construction Union negotiations elsewhere in the industry, where a positive resolution is yet to be demonstrated. We expect Aquarius to see a positive response from the market today, particularly given that the general consensus was that the negotiations would not be completed without disruptive striking," it said in a note.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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