Impala Platinum (Implats) yesterday confirmed that the illegal work stoppage the North Shaft of its Bafokeng operation in the North West province had been resolved.
Implats shares on the JSE strengthened by 8.2% to close on the JSE yesterday at R93.65.
"Following constructive engagement between the management team and employee representatives, the issues were resolved. As a result, normal attendance levels were recorded at North Shaft from the morning shift today (Wednesday),“ Implats said.
However, analysts said yesterday Implats’s acquisition of shares in Bafokeng Platinum mines had so far been tough, .
Implats – just like other platinum group metals (PGM) miners such as Sibanye-Stillwater – has been facing turbulence to operations owing to low prices for the precious metal.
The South African PGM miners have been forced to retrench workers from shafts and to save head office and regional offices costs.
The Bafokeng Platinum operation in which Implats raised its stake to a majority control last year has not been spared the headwinds afflicting SA PGM miners.
This had seen contract employees at the operation embark on a week-long work stoppage action starting last week, demanding permanent positions with the company.
The illegal strike action involved members of the contractor workforce demanding permanent positions, Implats said yesterday.
The strike commenced on Thursday, June 27, and Implats said it was monitoring the situation while enhancing security at the mine to safeguard other employees from intimidation and related dangers.
Market analyst Alex Fray said Implats was running into frequent industrial action since its acquisition of the platinum mine.
“This is the second incident of illegal industrial unrest at Impala Bafokeng since its acquisition by Implats,” Fray said.
Northam abandoned its bid for further shares in Bafokeng in April last year, leaving Implats with more than a 91% stake in the operation.
Earlier this year, Implats said it could be forced to undertake a restructuring of Impala Bafokeng. This week, the company confirmed that Impala Bafokeng is battling for viability.
“Impala Bafokeng along with Implats’s other South African operations is currently undergoing a Section 189 consultation process in terms of the Labour Relations Act which may lead to staff reductions,” said Implats.
“These demands (by Impala Bafokeng workers) take place amid a difficult operating environment for platinum group metal (PGM) producers given the depressed PGM prices,” the company said.
It added that the longer-term impact of this illegal strike poses a risk to sustainable employment, particularly given Impala Bafokeng’s “recent underperformance”.
Impala Bafokeng had “recorded weak production and a significant cash outflow” during the first half of the 2024 financial year.
To end the strike Implats had served a court order “on the individuals who instigated the illegal strike action, which declared it unprotected and interdicted employees from participating or engaging in any acts of violence, intimidation”, and harassment.
Earlier this month, Implats announced that it had concluded a transaction to raise broad-based black economic empowerment in its operations and those of Impala Bafokeng.
The Implats empowerment transaction worth about R9 billion also includes community and employee share-ownership schemes.
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