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Anglo American PLC AAL Anglo American update re. Kumba Iron Ore



  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 
August 2012.

 

 

The Company will provide further updates as appropriate.

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
MSCUGGPUUUPPGWR -0- Oct/08/2012 13:47 GMT
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