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.
South Africa’s Impala Platinum on Tuesday said it had agreed a five-year wage deal with the Association of Mineworkers and Construction Union (AMCU).
“The agreement is in line with current mining inflation of (about) 6.5% and considers the reality of sustained inflationary pressures faced by our employees,” Impala said in a statement, adding that the wage deal takes effect on July 1.
The pay deal covers increases in basic salaries, living-out and home-ownership allowances, medical aid and pension fund contributions, the company said, without providing specific figures.
Impala said the agreement secures five years of stability at its operations in South Africa, a country where strikes have often interrupted mines’ production.
Last month, Impala’s peer Anglo American Platinum also agreed a five-year pay deal with unions.
Impala’s shares were up 2% by 1115 GMT.
(By Nelson Banya; Editing by Helen Reid and Louise Heavens)
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