Impala Platinum Holdings Limited - Work stoppage extends to all underground
employees at Impala
Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1957/001979/06)
JSE Share code: IMP
LSE: Impla
ADRS: Impuy
ISIN: ZAE000003554
("Implats" or "the company")
Work stoppage extends to all underground employees at Impala
Impala Platinum Holdings Limited (Implats) has confirmed that the unprotected
work stoppage at the company"s north shafts has continued, and has now been
extended to the southern shafts, at the company"s operations on the Impala Lease
Area in North West Province.
The stoppage now involves most underground employees (about 70% of employees) on
the Impala Lease Area. Management continues to meet with the National Union of
Mineworkers ("NUM") to resolve the matter. The situation is exacerbated by the
fact that no demands have been made of management and that the work stoppage
appears to be related to disagreements within the union movements.
Production has now been affected with the Mineral Processes operation running at
about 20% of capacity as ore is sourced from open cast operations and the
surface stockpile.
Implats estimates that the cost of the production loss could amount to 2,700
ounces of platinum or in the region of R24 million per day if the production is
not made up.
Note for background:
The work stoppage relates to a disagreement in respect of funeral benefits
payable to employees who die as a result of non-work related causes, including
AIDS, as well as motor vehicle and other accidents, cancer, diabetes, etc. All
employees are covered for funeral benefits amounting to R10,000 payable by the
company"s Provident Fund in line with an agreement reached with the NUM on this
matter in January 2003.
Historically, employees received R5,000 funeral benefits and could also access
additional funds from a so-called Welfare Fund, which had been funded by the
proceeds from on-mine recreational facilities. The Fund proved to be
unsustainable as fewer employees chose to live in on-mine hostels, while demands
on the Fund also increased through an increase in HIV/AIDS related deaths.
Implats had been in discussions with the NUM on this issue since 1999.
Ends
For further queries:
Gert Ackerman
(011) 481 3936 (Tel)
082 574 3014 (Cell)
Paul Visser
082 576 6376 (Cell)
18 March 2003
Johannesburg
Issued by Sponsor
Deutsche Securities (Proprietary) Limited
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