Amplats threatens legal action after just 20pc of workers show up

Mining giant Anglo American Platinum (Amplats) has said turnout at its Rustenburg mines, where a temporary halt was put on operations amid a wave of labour unrest, has continued to be below 20 per cent since re-opening on September 18th.

By MoneyWeek

published 26 September 2012

in Features

The firm, which reiterated that the current industrial action is illegal, has now said disciplinary action will be initiated on September 27th against those employees who persist in unlawful strike action.

The company also confirmed that the volume of lost platinum production from its Rustenburg mining operations since September 12th has amounted to around 20,000 ounces.

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Chris Griffith, Chief Executive Officer of Amplats, said: "We have repeatedly urged our employees to come back to work and I do so again - I am making a personal appeal for all striking employees to return to work immediately.

"If our employees do not heed this call, we will simply have no choice but to begin disciplinary action tomorrow against any employees who remain on strike and that action could lead to dismissals. Our Rustenburg mining operations are under considerable economic pressure and their future is already under review."

Anglo American's share price fell 3.6% to 1,832p by 13:26. The shares are down 19%, equal to 432p, over the past 12 months, 202p of which was lost in the past week alone.