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Chromium/Platinum Group Metals

Empty Buses Show Defiance in S. Africa’s Platinum Strike – by Kevin Crowley (Bloomberg News – May 23, 2014)

http://www.bloomberg.com/

An empty bus that’s supposed to be taking Lonmin Plc (LMI) employees back to work rolled along the dusty main road in Marikana in the heart of South Africa’s platinum belt, where miners have been on strike for four months.

“You can see for yourself,” said Jandri van Rensburg, a 25-year-old platinum miner who was drinking beer outside Survivors Pub in the settlement on a sunny Friday afternoon. “Don’t believe what the mines are saying — people don’t want to go back to work.”

The bus, green with about 30 seats and a Lonmin sign on the side, was one of three empty shuttles that a reporter from Bloomberg News saw on May 16 heading toward Lonmin (LON)’s Wonderkop mine, close to where 34 wage protesters were killed by police in 2012. Mediation talks between the companies and worker representatives in Johannesburg, set down for three days, have been extended into the weekend.

Van Rensburg’s defiance reflects anger and masks fear in the Rustenburg area of the North West province, where as many as 1.6 million people have been affected by the strike at operations owned by Lonmin, Anglo American Platinum Ltd. (AMS) and Impala Platinum Holdings Ltd. (IMP) Five people have been murdered this month, including four miners, while thousands of starving families rely on food aid.

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Platinum Shortage Widens With Palladium on Tight Supplies – by Nicholas Larkin (Bloomberg News – May 20, 2014)

http://www.bloomberg.com/

Supply shortages for platinum and palladium will be the largest in more than three decades this year on stronger demand from car companies and restricted supplies, Johnson Matthey Plc said.

Platinum consumption will beat supply by 1.22 million ounces, compared with 940,000 ounces in 2013, London-based Johnson Matthey said in its platinum-group metals report. Palladium’s deficit will expand to 1.61 million ounces, from 371,000 ounces last year. They would be the biggest shortfalls ever, based on data going back to 1975 for platinum and 1980 for palladium on the company’s website.

Platinum has gained this year as more than 70,000 workers went on strike from January in South Africa, the largest producer of the metal and second-biggest for palladium. Demand from automakers, which use the metals in pollution-control devices, helped keep the materials in shortages since 2012. Palladium reached the highest since 2011 this month, partly as western nations threatened top producer Russia with sanctions.

“Supply-side issues are common to both platinum and palladium,” Peter Duncan, general manager, market research at Johnson Matthey, said yesterday.

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Workers flee to safe houses on South Africa’s strike-hit platinum belt – by Ed Stoddard and Nomatter Ndebele (Reuters India – May 22, 2014)

http://in.reuters.com/

RUSTENBURG, South Africa, May 22 (Reuters) – The chanting began around midnight, a chilling message through the cold of the early South African winter to those who had dared to cross the picket lines at platinum producer Lonmin.

“The rats must come out of their holes. We are going to kill this NUM,” the crowd chanted as it approached the home of ‘Mary’, a member of the National Union of Mineworkers (NUM) who had kept working at Lonmin when the rival Association of Mineworkers and Construction Union (AMCU) was on strike.

Her real name cannot be revealed because she fears for her life. “I heard singing in the distance. I thought I was actually dreaming, but it was getting nearer and nearer,” said Mary, who spoke to Reuters at an undisclosed location.

The events she related unfolded outside her home near Lonmin’s Marikana mine on May 14, which the London-listed company had declared a “return to work day” in the hope of persuading enough people to end the crippling AMCU strike.

The 17-week stoppage, which has also hit Anglo American Platinum and Impala Platinum, did not end that night; AMCU members blocked roads, extending the longest and costliest industrial action in South African mining history.

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UPDATE 2-Platinum firm Lonmin says “bleeding” from S.Africa strike – by Ed Stoddard and Silvia Antonioli (Reuters India – May 19, 2014)

http://in.reuters.com/

JOHANNESBURG/LONDON, May 19 (Reuters) – South African platinum miner Lonmin has lost a third of its annual production due to an industry strike over wages which its chief executive described as a “bleeding” that might lead to the company’s death if not stopped in time.

South Africa’s longest and costliest mining strike turned violent this month, with four miners killed as more employees tried to report for work at the world’s top platinum producers.

Lonmin had anticipated a mass return of its employees to work last week, but striking members of the main Association of Mineworkers and Construction Union (AMCU) prevented many other workers from going back to the mines.

The strike has also hit the South African operations of Anglo American Platinum and Impala Platinum, taking out 40 percent of global production of the precious metal used for emissions-capping catalytic converters in automobiles.

“The strike has now entered its 17th week and we have now lost a third of our production for the whole year,” Lonmin chief executive Ben Magara said on Monday during a briefing with journalists in Johannesburg.

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Platinum industry: Golden goose – or dying duck? – by Lisa Steyn (Mail and Guardian – May 16, 2014)

http://mg.co.za/

Platinum producers have oversupplied the market to such an extent that, even if nothing was mined for an entire year, global demand would still be more than satisfied.

This has been the case for several years now, with the industry producing more than what the market requires. Analysts say the over-production is the result of overly optimistic predictions of demand for platinum, mainly used in the manufacture of autocatalysts, which date as far back as a decade ago.

But the forecasts have proved incorrect, and efficiencies such as recycling technologies have muted the need for new platinum production.

Still, platinum mining companies have continued to pile up the precious metal, meaning that the commodity price has been under pressure. Despite limited or no production from the major mining houses as the strike persisted over the past four months, the oversupply of platinum is so substantial that the metal price – staying around the level of $1 450 an ounce – has failed to respond notably to the developments.

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SA is committing economic suicide with platinum strike – by Mike Schüssler (Mineweb.com – May 15, 2014)

http://www.mineweb.com/

A shocking 1.4 million people stand to be affected in some way by the ongoing platinum strike in Rustenburg, now in its 16th week.

JOHANNESBURG – A shocking 1.4 million people stand to be affected in some way by the ongoing platinum strike in Rustenburg, now in its 16th week.

According to the Department of Mineral Resources the mineral economy makes up 9% of the gross domestic product (GDP). The sector also employs 525 000 people and a further 841 000 are employed in sub sectors supplying goods and services to the industry.

Platinum group metals (PGMs) make up nearly a quarter of mining production and is the largest sub-sector in mining. The latest statistics suggest that this subsector employs 196 000 people and highlights that PGMs is probably the most important in the mining sector, as it relies more on labour intensive methods than mechanisation.

However the 70 000 workers on strike have affected many more people. Firstly the mines involved employ 125 000 workers in the sector (including contractors) which is nearly 64% of all those working in the platinum industry.

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UPDATE 4-S.African police vow to crack down on strike intimidation [South African platinum belt] – by Zandi Shabalala (Reuters U.S. – May 14, 2014)

http://www.reuters.com/

MARIKANA, South Africa, May 14 (Reuters) – South Africa’s police minister vowed to crack down on violence against platinum miners who were trying to return to work and arrest “within hours” strikers he said were behind a campaign of intimidation. South Africa’s longest and costliest strike ever, has taken a violent turn in recent days, with four miners killed as more employees try to report for work at the world’s top platinum producers.

Earlier on Wednesday, striking members of the main Association of Mineworkers and Construction Union (AMCU) prevented other workers from returning to platinum producer Lonmin’s shafts, thwarting the company’s efforts to end the 16-week strike.

“In South Africa, the rule of law reigns … Anarchy is not what is going to be accepted,” minister Nathi Mthethwa told a news conference later. Anglo American Platinum and Impala Platinum have also been hit by the strike, which has brought to a halt 40 percent of global production of the precious metal used for catalytic-converters in automobiles.

Lonmin had been aiming on Wednesday for a “mass return” of workers but a spokesman said “a very low number” had showed up. The producers have said many of the strikers have signalled a willingness to accept the latest pay.

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NEWS RELEASE: KWG Resources Inc.: Black Horse Chromite Resource Now 77.9 Million Tonnes @ 35.3% (ccnm)

TORONTO, ONTARIO–(Marketwired – May 13, 2014) – KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) has received from Sibley Basin Group Geological Consulting Services Ltd. an updated geological report and calculation of the resources inferred from drilling data recovered to date from the Black Horse chromite deposit. The report dated May 12, 2014 was authored by Alan Aubut, P. Geo., under the provisions of National Instrument 43-101. The resources inferred therein were additionally informed by three drill intercepts generated during the winter 2014 drilling campaign and by the intercept in hole FNCB-13-031 which was not used in the 2013 calculation due to it being located 50 metres west of the western claim boundary on the adjoining claim of Noront Resources Inc. The report provides in part:

Using the drill hole data available as of May 6, 2014, an Ordinary Kriged block model was created for the Koper Lake Project chromite deposit. The volume modelled is 0.6 km long and has a down dip extent of approximately 1.0 km with the top of the mineral zone as high as 350 metres below surface and has been traced down to a depth of approximately 1400 metres below surface. All of the resources present have a low confidence in the estimate such that they can be classified only as Inferred Resources. The following table provides the identified Inferred Resources using a cut-off of 20% Cr2O3.

Classification                             Tonnes (millions)                        %Cr 2 O 3
Inferred Resources                                            77.9                                 35.3

1. CIM Definition Standards were followed for classification of Mineral Resources.
2. The Mineral Resource estimate uses drill hole data available as of May 6, 2014.

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NEWS RELEASE: Zeldes Haeggquist & Eck LLP Announces Investigation of Cliffs Natural Resources, Inc.

May 12, 2014 09:01 AM Eastern Daylight Time

SAN DIEGO–(BUSINESS WIRE)–Zeldes Haeggquist & Eck, LLP, a shareholder and consumer rights litigation firm has commenced an investigation into Cliffs Natural Resources, Inc. (“Cliffs” or the “Company”) (NYSE: CLV) for securities law violations in connection with the Company’s initial public offering (“IPO”).

“deeply concerned by the destruction of shareholder value suffered by shareholders.”

Cliffs is an ire ore mining company incorporated and headquartered in Cleveland, Ohio, which had been developing three large iron ore and chromite mines in Canada. On February 15, 2013, Cliffs conducted an IPO in which it sold $675 million of stock to investors. Since the IPO, the stock has fallen nearly $6 per share, or 25%, to approximately $19 per share, wiping out over $162 million in shareholder value.

Our investigation focuses on whether Cliffs failed to disclose material information to investors regarding problems or delays with its Canadian mines. Specifically, we are investigating whether Cliffs made false statements or material omissions in its Registration Statement and Prospectus regarding development delays and operating and infrastructure problems at several of Cliffs’ iron ore and chromite mines in Canada.

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Showdown looms in South African platinum strike – by Geoffrey York (Globe and Mail – May 7, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — Platinum mining companies are heading into a final showdown with 70,000 striking workers this week, trying to break a stubborn union that has spearheaded the longest and costliest strike in the history of South African mining.

The outcome is likely to trigger a major overhaul of the country’s platinum sector, leading to mine closings, greater mechanization and thousands of job cuts. It could indirectly benefit several Canadian companies that plan to operate mechanized platinum mines in South Africa.

The three major producers, accounting for about 40 per cent of the world’s platinum production, are seeking to bypass the union by taking their wage offer directly to employees in cellphone text messages, public meetings and radio commercials.

One of the three companies, Lonmin PLC , has set a Thursday deadline for phone-message acceptance from its employees. It is hoping to have its employees back at work by the middle of next week. The other two companies are making similar efforts.

The strike is in its 15th week, inflicting heavy damage on the mining firms and the workers, with no sign of a revival of the talks. The three major producers have lost an estimated $1.6-billion (U.S.) in revenues so far, while the employees have lost about $700-million in earnings.

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New documentary explores South Africa mine shootings – by Nomatter Ndebele (Reuters India – May 6, 2014)

http://in.reuters.com/

JOHANNESBURG, May 6 (Reuters) – It was like a scene from the darkest days of apartheid: South African police opening fire with live ammunition, killing 34 striking black miners demanding a “living wage” from an international firm rich in capital.

But the killings outside of the Marikana mine of platinum company Lonmin happened on August 16, 2012, almost two decades after Nelson Mandela’s “Rainbow Nation” exchanged white-minority rule for multi-racial democracy.

A new documentary “Miners Shot Down”, by South African filmmaker Rehad Desai, explores the events leading up to what has been dubbed “the Marikana Massacre”.

The film has a special resonance at the moment because most of the country’s platinum miners have been on strike for a “living wage” of 12,500 rand ($1,200) a month for the past 15 weeks and a general election will be held on Wednesday.

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RPT-UPDATE 3-S.Africa’s Zuma slams striking union for risking mining jobs – by Ed Stoddard (Reuters India – May 5, 2014)

http://in.reuters.com/

JOHANNESBURG, May 5 (Reuters) – South African President Jacob Zuma has accused the AMCU union of irresponsibility for dragging out a wage strike in the platinum sector for almost four months, telling reporters there was a risk of workers losing their jobs because of the dispute.

Zuma, who has made little previous direct comment about the strike, took aim at the Association of Mineworkers and Construction Union (AMCU) on Monday, underscoring political concerns about the stoppage and its impact on Africa’s most advanced economy, ahead of general elections on Wednesday.

“The union leaders have a responsibility … to ensure workers are protected so they don’t lose their jobs. You can’t get into a strike that at the end the workers lose their jobs. That’s your responsibility,” Zuma told a news conference.

Mining companies joined the attack on AMCU, saying intimidation was being used to keep its members in line and they would continue with their strategy of putting their offer directly to employees to bypass the union’s leadership. But using typically combative language and evoking class warfare, AMCU President Joseph Mathunjwa lashed out at the “platinum cabal” and its “exploitation of workers.”

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UPDATE 3-Implats says most miners want to end platinum strike – by Ed Stoddard (Reuters India – May 2, 2014)

http://in.reuters.com/

JOHANNESBURG, May 2 (Reuters) – Impala Platinum said on Friday that two thirds of its striking workers had indicated by text messages and phone calls that they want to accept the company’s latest wage offer and end South Africa’s longest and most costly mining strike.

The 14-week strike by the Association of Mineworkers and Construction Union (AMCU), which has also hit Anglo American Platinum and Lonmin, has taken out 40 percent of global platinum production and cost the companies nearly 16 billion rand ($1.5 billion) in lost revenue.

Implats spokesman Johan Theron told Reuters that workers who were unable to send texts because they have no money for air time were making use of telephones at mine recruitment offices. “We will have a totally clear picture next week,” he said.

AMCU General Secretary Jeffrey Mphahlele declined to comment on the company’s claim, but the union said it planned to hold a press conference in Johannesburg on Monday.

The producers last week said they would take their latest offer directly to the roughly 70,000 striking miners after talks collapsed, setting the stage for a dramatic showdown.

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UPDATE 2-S.Africa’s AMCU says striking miners reject platinum wage offer – by Zandi Shabalala (Reuters India – April 29, 2014)

http://in.reuters.com/

MARIKANA, South Africa, April 29 (Reuters) – Members of South Africa’s striking mining union AMCU have rejected the latest wage offer from the world’s top three platinum producers, its president said on Tuesday, extending a crippling 14-week stoppage.

“The members have rejected the offer from the employer,” Joseph Mathunjwa told reporters after addressing a rally of workers near Lonmin’s Marikana mine.

The Association of Mineworkers and Construction Union (AMCU) held similar rallies in recent days at Anglo American Platinum and Impala Platinum. It now plans to meet this week with the companies to inform them in person of the rejection, Mathunjwa said.

Marathon wage talks collapsed last week, dashing hopes for an imminent end to South Africa’s longest and most costly mining strike, which has hit 40 percent of global platinum production and threatens growth in Africa’s most advanced economy.

The companies say they are taking their offer directly to the workers via cellphone text messages and radio and newspaper spots in a bid to circumvent AMCU’s leadership, setting the stage for a grinding showdown between capital and labour.

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Election violence flares in South Africa’s platinum belt – by Ed Stoddard (Reuters U.K. – April 27, 2014)

http://uk.reuters.com/

JOHANNESBURG – (Reuters) – Police used water cannon and stun grenades to disperse rioters in South Africa’s strike-hit platinum belt on Sunday after a government minister was attacked by rock-throwing protesters while campaigning for the May 7 election.

Police spokesman Thulani Ngubane told Reuters a community hall, municipal centre and the house of a councillor for the ruling ANC were burnt down. He would not identify the rioters but local media and union leaders said the minister had been attacked by members of the striking AMCU miners’ union.

Ngubane confirmed sports minister Fikile Mbalula had to be whisked away under police protection after he and the ANC activists he was campaigning with were confronted by a crowd in the shanty town of Freedom Park northwest of Johannesburg.

It was after this that the protest erupted into a full-scale riot, Ngubane said. Sydwell Dokolwana, the regional secretary for the National Union of Mineworkers (NUM), a key ANC ally and AMCU’s arch rival, told Reuters he was with the minister at the time and that several people were hurt in the scuffle.

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