Impala Platinum Holdings Ltd. (PINK:IMPUY) Q-3 Platinum output fell 46%
Impala Platinum Holdings Ltd, the World's 2nd-largest Platinum producer, said Q-3 output of the metal fell 46% as union rivalry and a pay dispute prompted a 6-week stay-away by workers.
The strike resulted in significantly lower production at Impala Rustenburg, the Johannesburg-based company said. Costs were severely impacted by the strike, it said.
Impala's Rustenburg operation, the World's biggest Platinum mine, lost more than 120,000 oz of output in the strike that started in mid-January.
The stoppage was the main reason for South Africa's economic growth slowing to an annualized 2.7% in Q-2 from 3.2% in the prior 3 months.
South Africa is the World's largest producer of Platinum, used in devices that cut harmful vehicle emissions and to make jewelry.
Impala and Anglo American Platinum Ltd. (PINK:AGPPY)) produce more than 50% of the World's Platinum.
Violent union rivalry in which a worker was shot stopped the mine again for 2 days last week. The operation is expected to return to full output next month, the company said.
The National Union of Mineworkers, South Africa's largest miners' union, has had 10,813 resignations at Rustenburg, Impala said. The rival Association of Mineworkers and Construction Union claims it now has more than 8,000 members and has approached the company for organizational rights, Impala said.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.