UPDATE 3-South Africa's Implats shuts mines ahead of platinum strike

Thu, 23 Jan - 2:14am

* Strike to hit over half global platinum output

* Amplats says back in profit in 2013

* Strike would set back Amplats' recovery

* Government offers last-ditch mediation

(Adds ruling on gold strike, clarifies Impala shutdown)

By Ed Stoddard and Olivia Kumwenda-Mtambo

JOHANNESBURG, Jan 22 (Reuters) - South Africa's Impala Platinum IMPJ.J shut its Rustenburg operations on Wednesday a day before a planned strike over wages across the country's platinum belt by the hardline Association of Mineworkers and Construction union (AMCU).

AMCU, the platinum industry's main trade union, plans to strike from Thursday at Implats, Anglo American Platinum

AMSJ.J and Lonmin LMI.L , the top three producers of the metal used in emissions-capping catalytic converters in cars.

The union had also planned to strike in the gold sector but a court ruled that the strike be suspended pending a review of its legality. News Search ID:nL5N0KW35X

Around 100,000 workers or a fifth of South Africa's mining labour force could down tools or be prevented from crossing picket lines in a stoppage that would hit over half of global platinum production.

However, Implats said it was closing its Rustenburg operations from its mines, processing units and smelter ahead of Thursday's strike to ensure the safety of its employees.

"We have also deployed additional security measures," spokesman Johan Theron said, adding those reporting for work during the strike would be paid even if the mines were shut.

The company said its Marula mine in the northern Limpopo province and Two Rivers mine in the eastern Mpumalanga province were not affected by the strike and had not been shut.

Amplats and Lonmin said they would stop operations with the morning shift on Thursday.

Police said officers would be deployed to the platinum belt to ensure the strikes were peaceful, a necessary precaution after a protracted and bloody turf war in 2012 and 2013 between AMCU and the rival National Union of Mineworkers (NUM).

The chief executives of the three affected platinum producers said on Tuesday the industry could ill-afford further production and job losses, noting they had lost a combined 879,400 ounces of output to labour stoppages in 2012 and 2013.

News Search ID:nL5N0KV3E7

Platinum traded near $1,452 an ounce on Wednesday, near a three-month peak reached this week on the strikes.

Amplats said on Wednesday it swung back into profit in 2013 as it rebounded from a wave of wildcat strikes but its recovery is again threatened by this week's looming industrial action.

News Search ID:nL5N0KW0JX

LAST-DITCH MEDIATION

The government, lead by Deputy President Kgalema Motlanthe, has offered to mediate to try to end the dispute, which threatens South Africa's already struggling economy.

"The three platinum producers have all accepted, so they are willing to come together in one room to have one negotiating team," Motlanthe spokesman Thabo Masebe said. "AMCU did indicate that in principle they are willing to negotiate."

There were also signs of divisions in AMCU's ranks after dissidents said this week they planned to form a rival union, accusing its leadership of recklessly pursuing a damaging strike they say many miners do not want and cannot afford.

Vuyo Maqanda, AMCU shop steward at Implats, told Reuters workers there were holding a mass meeting on Wednesday to decide whether or not to heed the strike call by AMCU leader Joseph Mathunjwa.

"Mathunjwa told the workers they need to strike, whereas the workers don't want to go on strike. They have no money - it's January," he told Reuters.

The union was also threatening to strike over wages at gold mines operated by AngloGold Ashanti ANGJ.J , Harmony Gold

HARJ.J and Sibanye Gold .

The bullion producers sought a court order to halt the action on the grounds that a wage agreement signed with last year with the NUM - still the majority union on the gold mines - applies to all workers in the sector.

The court is due to give its verdict on Jan. 30 and ordered the strike be halted until then.

Besides the economic damage, President Jacob Zuma and the ruling African National Congress (ANC) are keen to avoid labour unrest ahead of general elections expected in around three months.

(Additional reporting by Zandi Shabalala, David Dolan and Ed Cropley; Editing by Ed Cropley, Mark Potter and David Evans)

((Edward.Stoddard@thomsonreuters.com)(+27 11 775 3160)(Reuters Messaging: edward.stoddard.thomsonreuters.com@reuters.net))

Keywords: SAFRICA STRIKES/

URN: 
urn:newsml:reuters.com:20140122:nL5N0KW15G:4
Topics: 
VIO ZA PIA GB CMPNY INDS JOB PREC MINE METL MIS RTRS DISP MIN GDM BMAT COMA GOL MUL EUROPE PGM MEMI PLAT CWP MET EUROP DIP COM EMRG POL LEN NEWS1 PREMTL BACT GEN AFR WEU AFE MTAL

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