• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 5 hours Permafrost Melting Will Cost Us $70 Trillion
  • 48 mins Nothing Better than Li-Ion on the Horizon
  • 5 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 4 hours Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 1 hour UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 5 hours Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 21 hours Countries with the most oil and where they're selling it
  • 46 mins How many drilling sites are left in the Permian?
  • 9 hours ..
  • 22 hours Section 232 Uranium
  • 24 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 14 hours Iran Sabre Rattles Over the Straights of Hormuz
Alt Text

Miners Are Looking To Ramp Up Lithium Production

Lithium prices have withstood all…

Alt Text

Lithium Plunging As Chinese EV Production Slows

China’s electric car subsidy changes,…

Alt Text

Peak Lithium Won’t Happen Anytime Soon

Peak lithium is not happening…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

South African Platinum Faces Imminent Crisis

Six weeks ago I wrote about a possible coming crisis for the platinum sector. With mineworkers unions in top producer South Africa tabling demands for substantial wage increases from cash-strapped mining firms.

And this week, the fireworks began in this brewing battle.

On Monday, the Association of Mineworkers and Construction Union (Amcu) said it has formally filed disputes against South Africa’s three largest platinum miners. Taking the firms to task over their failure to comply with the requested wage increases.

This declaration now triggers an internal dispute resolution process. With the union saying it plans to meet Anglo American Platinum and Impala Platinum this week — with major producer Lonmin to follow.

These discussions are expected to last four weeks. After which the union can officially refer the dispute to South Africa’s Commission for Conciliation, Mediation and Arbitration to be settled externally.

If the wage dispute does indeed go to formal arbitration, it would be a major escalation in this critical matter. Raising the possibility that the Commission could decide in the union’s favour — and saddle mining companies with increased labor costs.

For their part, miners say they simply can’t afford higher wages. Especially with lower platinum prices and rising capital costs at South Africa’s mines pinching profits.

Whatever the decision here, there is going to be major friction. A positive outcome for workers would mean less cash for project investment, while a decision in favour of the mining companies is likely to cause strife with the unions. Perhaps leading to strike action.

This all comes as more and more alarm bells are sounding across South Africa’s platinum industry. Just this week, Anglo American’s Mogalakwena mine was completely shut down by protests from the local community.

On the same day that Impala Platinum CEO Terence Goodlace told his company’s investors that South African platinum production is “going to drop off a cliff” due to under-investment.

Watch for news on the negotiations between the Amcu and miners throughout September. And for a possible arbitration request toward the end of the month, which could signal big issues looming.

Here’s to the tension.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News