South African mining strike costs commodity producers almost 1bn dollars

25th Mar 2014 14:49

A nine-week long mining strike in South Africa has cost the industry almost 1bn dollars.Mining workers at Anglo American Platinum, Lonmin, and Impala Platinum want their pay to be doubled but the companies say they are unable to afford to meet the demands. "Mines and shafts are becoming unviable; people are hungry; children are not going to school; businesses are closing and crime is increasing," the companies said in a joint statement, according to the BBC.They said the sector had lost close to 10bn rand, or $920, in revenue as a result of the strikes. Talks between the three biggest platinum producers and the AMCU union have been put on hold for the time being. Unions have requested workers' basic salary increased to 12,500 rand ($1,155; £702) a month for the lowest paid workers over a period of four years.Anglo American Platinum said the 29% increase in annual wages was "unaffordable" but was open to negotiations within a "reasonable settlement zone".The strike marks the largest since the apartheid era ended in South Africa in 1994. It has affected 40% of the world's platinum production.RD