Bloomberg News

AngloGold, Gold Fields Wage Talks Continue as Output Stalls

August 01, 2011

(Updates with comment from union in second paragraph.)

Aug. 1 (Bloomberg) -- South Africa’s Chamber of Mines, which represents some of the continent’s largest gold and coal producers, will today discuss a new wage offer with labor unions to end a strike that has halted output at companies including AngloGold Ashanti Ltd. and Gold Fields Ltd.

Talks with unions representing gold miners will restart at 2 p.m. local time while negotiations with their counterparts in the coal industry are scheduled to resume at 10 a.m., according to Lesiba Seshoka, a spokesman for the National Union of Mineworkers.

“The strike is still continuing in both” industries, he said by mobile phone today. “We are moving closer together so we’ll see what happens today.” Seshoka declined to give details on the offers.

South African gold miners went on strike on July 27 after they rejected an offer to increase wages by 7 percent to 9 percent. The mineworkers’ union, the country’s biggest, is demanding almost triple South Africa’s 5 percent inflation rate.

AngloGold spokesman Alan Fine confirmed that the strike is continuing when contacted on his mobile phone today. Gold Fields spokesman Sven Lunsche declined to comment.

Workers at South African coal mines operated by Anglo American Plc, Xstrata Plc and Exxaro Resources Ltd. mines started a strike on July 24, while diamond producer De Beers’ employees have stayed away from work since July 22.

--Editors: Alastair Reed, Vernon Wessels.

To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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