Crocodile Mine Fires Contract Companies

Johannesburg, Jul 13, 2009 (Business Day/All Africa Global Media via COMTEX) -- ELRFF | Quote | Chart | News | PowerRating -- The services of the contract mining companies whose employees were involved in a sit-in at Crocodile River mine have been terminated, Eastern Platinum said today.

Last week an illegal protest took place underground and members of management were allegedly taken hostage at the Brits mine in North West.

"The contracts will terminate with immediate effect," said Ian Rozier, president and CEO of Eastern Platinum.

He confirmed that the company had brought charges against those individuals employed by the contractor companies who took part in the illegal activities last week.

This would apply "specifically in relation to safety and health transgressions, and to the holding of other underground personnel against their will, as documented by the South African Police Services from statements made by those held".

Rozier said Crocodile River mine intended to undertake all core mining activities with mineworkers whom it directly employed.

"Currently, Crocodile River mine directly employs 1500 people and will engage the additional employees required in the immediate future.

"The labour compliment to be directly employed by Crocodile River mine and the specific skills sets required are still to be determined," Rozier said.

He said this was expected to have a short term impact on production.

"The processing plant at Crocodile River mine has continued to operate at full capacity from the surface ore stockpile since the beginning of the illegal sit-in that began on Thursday 9 July.

"Currently about 25% of production at Crocodile River mine comes from the Maroelabult section, which was unaffected by the illegal action."

Rozier said Crocodile River mine would reassign crews in its direct employ to expedite the transition of all core mining activities to "owner mining".

"This will enable about 50% of current production to be achieved immediately mitigating the impact of the transition."

He said that in line with a memorandum of understanding signed with the National Union of Mineworkers (NUM) on Saturday and with South African labour legislation, Crocodile River mine would discuss its plans with the NUM to move towards direct employment for all core mining activities.

"The direct employee/contractor employee issue in the mining sector in South Africa is a complex one and is a high priority for the mining industry and the NUM to resolve.

"However, in light of the legal and safety issues surrounding the events of last week, we have no alternative but to terminate the services of the contract mining companies," Rozier said.

The NUM's spokesman Lesiba Seshoka said the union welcomed the cancellation of the contracts, in line with its rejection of labour brokers.

"We are going to be meeting them [Crocodile River mine's management] this [Monday] morning," he said.

Seshoka hoped that those who had staged the illegal sit-in would become permanent employees of the mine.

"We personally don't think they can be charged by the law, they didn't hold anyone hostage and they were promised by the mine that they would become permanent staff," Seshoka said.

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index