By Antony Sguazzin and Carli Lourens
Dec. 4 (Bloomberg) -- South African miners held their first national safety strike, curtailing operations that produce three- quarters of the world's platinum and more than a 10th of its gold.
The National Union of Mineworkers, South Africa's biggest labor union, called the strike as mine deaths rose this year, reversing a decade of progress. The action will involve 240,000 workers and affect 60 companies, it said.
``You need the pain, the pressure from labor and government,'' said Shoaib Vayej, who helps manage the equivalent of $37 billion at Cape Town's Sanlam Investment Management. ``You need a change in attitude.''
This year, at least 201 workers died in mine accidents compared with 199 in 2006, said the Solidarity labor union, which isn't joining the strike. South Africa's President Thabo Mbeki ordered a safety audit of the country's mines after 3,200 workers were temporarily trapped at Harmony Gold Mining Co.'s Elandsrand operation on Oct. 4.
Anglo American Plc, the biggest investor in South African mining, fell 2.3 percent to 3,118 pence in London trading. Anglo Platinum Ltd. fell 0.5 percent to 1,007 rand in Johannesburg while AngloGold Ashanti Ltd. dropped 1.1 percent to 328.25 rand.
The country's mines inspectorate began temporarily closing mining operations after accidents for investigations.
Toll Rises
``From a numbers point of view, it's deteriorating,'' Frans Barker, executive director of the country's Chamber of Mines, which represents most mining companies, said from Johannesburg today. ``We don't know if it's terrible luck or a trend.''
South Africa's has the world's deepest gold mines, with AngloGold's Savuka extending 2.35 miles underground, and use labor-intensive methods. Their depth leads to earth tremors, which can result in rock falls.
AngloGold, Africa's biggest gold producer, employs about 35,000 people in South Africa and 15,000 in other countries. South Africa accounts for half its output.
The worst South African mine accident was at the Coalbrook Colliery near Sasolburg in 1960 when 437 workers were buried alive, according to the NUM.
As of May, 458,600 people worked in South Africa's mines with 159,984 of those working in gold mines and 168,479 employed by platinum producers, government figures show. Coal, with 57,777 workers, is the next biggest employer. South Africa's 25.5 percent unemployment rate is the highest of 72 countries tracked by Bloomberg.
Mine Employment
South Africa is home to most of the assets of the world's three biggest platinum producers -- Anglo Platinum, Impala Platinum Holdings Ltd. and Lonmin Plc -- as well as three of the world's top six gold producers, AngloGold, Gold Fields Ltd. and Harmony.
Impala, Anglo Platinum, Lonmin and Northam Platinum Holdings Ltd. expect to together lose about 16,900 ounces of platinum output.
AngloGold won't produce gold at its South African mines and will focus on safety training today, spokesman Alan Fine said. Xstrata Plc, the country's third-biggest coal exporter, will do the same at its coal mines. Production at some of its chrome-ore mines has been affected.
Gold Fields said about 66 percent of workers at Africa's biggest gold mine, Driefontein, stayed away, as did 76 percent at its second-biggest, Kloof. The absentee rate at the smaller Beatrix and South Deep mines was about two-thirds. Harmony's production was cut.
Output Drops
Anglo American's coal unit said 65 percent of workers stayed away.
``We wanted to make a statement,'' Frans Baleni, secretary general of the NUM, said after leading a march to the chamber's offices in Johannesburg where he presented a memorandum. ``They must know if they don't take us seriously, they will lose production.''
South Africa's daily gold output averaged 23,245 ounces in the third quarter, the chamber said.
Increased focus on safety will boost costs and cut production, said Matt Brenzel, who helps manage the equivalent of $7.1 billion at Cape Town's Cadiz African Harvest Asset Management.
``You are going to spend more time ensuring safety and you won't be able to haul out as much,'' he said.
Higher Costs
South Africa is the biggest source of coal for European power plants and the world's largest chrome, manganese and vanadium producer.
The stoppages have cut production. Anglo Platinum said Nov. 16 that this year's output will be as much as 7.5 percent below a target set in July because of safety measures the company is taking.
Of the deaths last year, 113 were in gold mines, 40 in platinum operations and 19 in coal mines.
Still, gold-mine deaths have declined from a peak of 1,001 in 1909.
Platinum gained $5 to $1,466 an ounce in London as of 4:36 p.m. local time. Gold rose 0.5 percent to $798.21 an ounce.
To contact the reporter on this story: Antony Sguazzin in Johannesburg asguazzin@bloomberg.netCarli Lourens in Johannesburg at clourens@bloomberg.net
Last Updated: December 4, 2007 11:43 EST
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