Stiking South Africa Miners Set To "Bring The Mining Companies To Their Knees", Call For National Strike
The
situation in South Africa, already very bad, is about to get much
worse
13
September, 2012
As
if Bernanke promising to print, print, print until such time as the
Fed's flawed policy brings unemployment lower, which by definition
will not
happen when
the US is now suffering not from a structural unemployment "part-time
new normal" problem, was not sufficient to send gold and other
hard assets higher, today we get the double whammy announcement that
the situation in South Africa, already very bad, is about to get much
worse. Earlier today, South Africa's striking miners, already set on
belligerent courtesy with their employers and authorities, prepare to
go on general strike on Sunday, in effect shutting down all precious
metal production in a world that is about to demand hard asset more
than ever. "On Sunday, we are starting with a general strike
here in Rustenburg," demonstration leader Mametlwe Sebei told
several thousand workers at a soccer stadium in the heart of the
platinum belt near Rustenburg, 100 km (60 miles) northwest of
Johannesburg. The action was designed to "bring
the mining companies to their knees",he
said, to mild applause from the crowd, which
was armed with sticks and machetes."
Apparently
the weapons were merely for optical, jawboning purposes: "Despite
the weapons, the strikers insisted their push for a sharp hike in
wages was peaceful - even after the August 16 police shooting of 34
protesters at Lonmin's nearby Marikana platinum mine." It
remains to be determined just how "peaceful" the corporate
response will be if and when they realize that dreams of surging
profit margins are long gone. Probably not much. But in the meantime,
miner EPS will suffer even more. And, as always, the ultimate
beneficiary will be the actual metals, not those who extract it, as
the third
largest producer of gold in
the world is about to go offline indefinitely.
"There should be no blood," one placard read.
The wave of labor unrest rocking Africa's biggest economy kicked off with a violent strike at rival Impala Platinum in January and has since spiraled beyond the control of the government and unions into a grass-roots rebellion by blacks who have seen little improvement in their lives since apartheid ended 18 years ago.
Most men at the soccer stadium said they worked for top producer Anglo American Platinum, commonly known as Amplats, which had to suspend operations its four Rustenburg mines on Wednesday after they were blockaded by chanting marchers.
They also insisted they would not return to work until top management - including Cynthia Carroll, chief executive of Amplats parent company Anglo American - came to listen to their gripes and introduced a basic pay hike to 12,500 rand ($1,500) a month, more than double their current salary.
Shares in Anglo American Platinum, fell as much 1.8 percent in early trade on top of a 4 percent decline the previous day. Platinum held steady near the 5-month high it hit following Wednesday's Amplats shut-downs.
We
continue to expect the South African "example" to go
airborne, and move east. If and when Indonesia, Peru, and or, heaven
forbid, the world's largest producer of gold China, get a whiff of
just how much leverage miners actually do have in the world, watch
out.
South
African miners call for general strike
A
leader of South Africa's striking platinum miners has called for a
general strike to "bring mining companies to their knees".
BBC,
13
September, 2012
The
call came at a mass rally for the miners, who have been on strike for
weeks to press for higher pay.
Mametlwe
Sebei said the general strike would start in Rustenburg, the centre
of platinum production, on Sunday.
The
strikes have been marked by violent clashes, including the shooting
of 34 miners by police.
A
wildcat strike at a mine owned by the London-listed Lonmin on 16
August saw 10 people killed before the police started shooting.
Since
then, mines have been closed by leading companies, including Anglo
American, resulting in production suspensions and tens of thousands
of miners unable to work.
At
Thursday's meeting, protest leader Mametlwe Sebei told several
thousand miners: "On Sunday, we are starting with a general
strike here in Rustenburg."
His
call echoed that of the firebrand politician Julius Malema, who
called for a national strike when he addressed disgruntled soldiers
in the Johannesburg area on Wednesday.
That
led to the South African government placing its military on high
alert, the first such move since democracy came to the country in
1994.
Political
wrangling
The
government is concerned that the miners' protests are being used as a
focal point for opponents of South African President Jacob Zuma.
Mr
Malema, who was expelled from the ruling ANC party, is viewed as
trying to resuscitate his political career and force President Zuma
from office at its national conference in December.
Joseph
Mathunjwa, the leader of the Association of Mineworkers and
Construction Union (AMCU), has called for Mr Zuma to take a lead in
resolving the situation.
Mining
accounts for about 20% of South Africa's national output and the
country is home to 80% of known reserves of platinum.
The
price of the element, which has a wide range of industrial and
medical uses, has gained nearly 20% since the police shootings at
Lonmin's Marikana mine.
Shares
in both Anglo American and Lonmin
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