Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Newly merged commodity giant Glencore Xstrata (LON:GLEN) fired Monday about 1,000 workers across three of its chrome mines in South Africa after they staged an illegal strike last week, a spokesman for the company told The Telegraph.
Despite the ongoing labour stoppage, he added supplies to customers were not yet affected and that workers have until tomorrow to appeal their dismissal.
Last week the company said the miners, most of whom belong to the Association of Mineworkers and Construction Union (AMCU), stopped work in solidarity of a colleague, who they claim, was assaulted by a shift supervisor.
South Africa holds around 75% of the world’s chromite reserves. Chromium is a material used to produce ferrochrome and a key ingredient for stainless steel making.
The strike at Glencore Xstrata comes amid a renewed wave of labour troubles that started in early May, when miners shut down platinum producer Lonmin PLC (LON:LMI) over a union dispute.
