Northam reports no change in situation at Zondereinde

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JSE-listed Northam Platinum has said that the situation at the company’s Zondereinde mine remains unchanged.

This as its management continues to engage with the National Union of Mineworkers (NUM) in a bid to normalise operations at the mine.

Strike action led by the union started with the night shift on Tuesday however, the company insisted that smelter operations were unaffected.

“Following employees’ failure to return to work, in contravention of the terms of a Labour Court interdict, management temporarily suspended operations at the mine amidst rising tension amongst striking and non-striking employees,” [DATA NHM:Northam] said.

“Effectively, operations have been suspended since 16 January 2015 in the interests of securing the safety and security of employees and company property.”

The platinum group metals (PGM) producer added that essential services employees have continued to report for duty as per existing agreements.

“The ongoing strike action results in production losses of around 1,000oz of PGMs per day, equating to revenue of 11.5 million rand per day,” it said.

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“Employees forfeit wages and benefits in the order of 2.4 million rand per day.”

Zondereinde’s underground mining activities focus on the Merensky and UG2 reefs, with hydropower equipment being used for stoping and development.