Industrial action at Northam’s Zondereinde Mine: update 3

Northam suspends operations at Zondereinde Mine to secure safety and security of employees and company assets

Northam Platinum Limited advises that management has taken a decision to temporarily suspend operations at the Zondereinde Mine in the interests of securing the safety and security of employees and company property. Employees who are members of the National Union of Mineworkers (NUM) embarked on an unprotected strike on Tuesday 13 January 2015. Only essential services employees will be expected to report for duty as per existing agreements.

This decision has been taken amidst rising tension at the mine, owing to incidents of intimidation, assault and threats of violence towards non-striking employees and damage to property on 15 January 2015. A large number of employees signalled a desire to return to work on 15 January in line with the direction of the Labour Court.

Zondereinde management continues to engage with the NUM in a bid to normalise operations as soon as possible and urges the NUM to take heed of the Peace and Stability Framework for the Mining Industry, signed in February 2013.

At the same time, the company will follow disciplinary procedures in respect of employees who failed to heed the direction of the Labour Court to return to work. This could result in dismissals.

Zondereinde’s smelter operations continue to operate.

It should be noted that:

  • Zondereinde Mine produces approximately 65% of Northam’s annual production.
  • Production losses amount to around 1,000oz of PGMs per day, equating to revenue losses of R11.5 million per day. Employees forfeit wages and benefits of the order of R2.4 million per day.
  • Zondereinde Mine employs 6,600 permanent employees and 2,100 contractors.

Issued by
Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 (0) 82 895 0698
Charmane Russell +27 (0) 82 372 5816
Memory Johnstone +27 (0)11 880 3924