Labour Unrest Reaches Anglo American’s Iron Ore Business

PUBLISHED: Oct 03 2012 @ 10:13 | Comments (0) | More info about Kenneth G. Mondero

Amidst a disciplinary hearing of its striking employees from its platinum operations, global natural resources miner Anglo American plc (LSE:AAL) is now faced with a new group of strikers from its iron ore mine in South Africa, marking the first industrial action in the iron ore industry in the country since labour unrest erupted in July.

Anglo American’s 65.2% owned Kumba Irone Ore Limited confirmed today some 300 workers engaged in what the company declared as an unprotected industrial action at its Sishen Mine in the Northern Cape, another addition to the growing number of labour unrest spreading across South Africa’s mining industry.

“The employees are not represented by any of the recognised unions and their exact demands are not clear,” the Johannesburg Stock Exchange listed mining firm said in a statement.

Solidarity’s Deputy General Secretary, Gideon du Plessis, said the union’s members confirmed the workers went on strike at 2 AM local time and the trade union is expected to issue a statement in relation to the said strike.

“The action is limited to one area within the vast mining area of the open cast mine leaving most of the mine unaffected,” Kumba added.

The latest development comes as Anglo American’s subsidiary, Anglo American Platinum Limited (Amplats), is holding disciplinary actions against about 80% of its employees who refused to return to work after operations were suspended at the height of the labour action at the platinum mines of rival Lonmin plc(LSE:LMI) last month.

Amplats had repeatedly stated the actions of the striking employees have caused great constraints in the company’s mining operations, now under “economic pressure” with a possibility of a closure and the action at Kumba now threatens the performance of the mines, which contribute about 85% of the total iron ore sales of the company.

Anglo American has not communicated an official statement yet, as of press time, while its subsidiary, Kumba, declared it will update the market of any pertinent progress in the situation.

“The action is being dealt with in line with the Company’s labour relations procedure, with due consideration to the safety of the vast majority of workers who are not taking part in the unprotected strike,” Kumba disclosed.

Anglo American shares were down 2.2% to £18.35 per share at 2:30 PM GMT, trading on the London Stock Exchange.

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