Platinum price falls as miners look to end strike

Johannesburg (June 16)  South African platinum producers confirmed today agreement in principle has been reached over an end to the 20-week strike with the AMCU.

In a statement, Lonmin said an informal undertaking had been agreed with the leadership of the union, which would take it back to members to seek a mandate.

Similar undertakings has been made to Anglo American (LON:AAL) and Impala, Lonmin (LON:LMI) said.

“The companies expect to receive feedback from AMCU on Friday, 13 June. Thereafter, and should an agreement be reached, the companies will be assisting employees to ensure a safe return to a normal working environment."

The spot prices of platinum and its related metal palladium fell sharply on the news following strong gains in recent weeks as hopes of settlement seemingly fizzled out.

The latest offer from is said to be a salary increase of about 20%, or R1,000 ($93) a month. Producers have lost almost US$2bn in revenues from the 20-week strike.

Shares in Lonmin rose almost 15% yesterday as news grew of a possible end to the dispute, though today they eased slightly to 254p.

Source:  ProactiveInvestors