Anglo American PLC (AAL) - Anglo American update re. Kumba Iron Ore
RNS Number : 1774O
Anglo American PLC
08 October 2012
8 October 2012
Anglo American update re. Kumba Iron Ore
Anglo American plc draws attention to an announcement issued by Kumba Iron
Ore, the text of which is set out below:
Kumba Iron Ore update
Kumba Iron Ore (Kumba) confirms that engagement is continuing with the less
than 300 employees who embarked on an illegal strike on Wednesday, 3 October
2012, at the Company's Sishen Mine in the Northern Cape. The strikers are
demanding a monthly salary increase of R15 000 for all Kumba employees over
and above what they are already earning.
The Company's engagement with the strikers is focused on encouraging them to
leave the mine property, securing all mining equipment and to resume safe
mining operations as soon as possible.
Production was suspended on Thursday, 4 October 2012, when the strikers
blocked access to the pit, creating an unsafe environment for mining
operations. The Company is losing approximately 120 000 tonnes per day of
finished product due to the illegal strike. However, Kumba currently estimates
that it will have sufficient production from its other mines and stockpiles of
finished product at Sishen Mine and Saldanha to continue supplying its
customers until mid-October. The loading operations at Sishen Mine have also
been affected by the illegal strike and therefore not all load-out stations
are operating at full capacity.
The strikers are all permanent employees belonging to the Company's recognised
unions, but are acting on their own without union representation. Sishen Mine
employs approximately 12,700 workers.
· Kumba concluded a two-year wage agreement with organised labour two
months ago that makes provision for an increase of between 9% and 12% (total
cost to Company), which is well above the rate of inflation. Permanent staff
below management level also benefit from Envision, an employee share scheme,
that paid out R2.7 billion to 6 209 members at its first maturity date in
December 2011. Each Envision scheme member who has been employed by the
Company since its market listing in 2006 received a pre-tax cash payout of
approximately R570 000 at the time. Envision scheme members also receive
dividends twice a year which amounted to R33 675 (pre-tax) per member in
The Company will provide further updates as appropriate.
This information is provided by RNS
The company news service from the London Stock Exchange
MSCUGGPUUUPPGWR -0- Oct/08/2012 13:47 GMT
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