South Africa's National Union of Mineworkers said Wednesday it overwhelmingly accepted a wage offer from Anglo Platinum that boosts pay rates by as much as 10 percent.
Anglo Platinum, the world 's largest platinum company, offered a wage hike of 10 percent for the lowest paid workers in year one and 8.5 percent for the highest paid workers in year one. In year two, the lowest paid workers would receive a wage increment of 9 percent while the highest would receive 8 percent with a CPI valve of 2 percent.
Platinum companies that remain in talks or could resume talks include Impala, Northam Platinum and Lonmin.
This development should shave some of the premium off platinum as the risk of a supply disruption abates, said UBS strategist Edel Tully. While it is quite possible for platinum to come off on this headline, the downside is likely limited given our view that its recent rally has largely been on the back of gold rather than on supply risks.
In morning trading, the price of platinum on the CME Comex division of the New York Mercantile Exchange fell $2.20 to $1,850.90 an ounce.