Workers strike at Coal of Africa’s Mooiplaats colliery
Operations stopped at colliery following strike
Workers at Coal of Africa’s (CoAL) Mooiplaats colliery in South Africa embarked on a legal strike over wages on Tuesday, the company said, the latest incident of industrial action to hit the country’s mining sector.
CoAL’s shares fell almost 18% after it said employees who are members of the National Union of Mineworkers (NUM) had rejected the company’s 22% pay rise offer, which included increases in wages and overall benefits.
Unlike a series of other strikes in South Africa’s mining sector, the downing of tools at Mooiplaats is legal.
“Unfortunately the mediation process was not successful and resulted in the workers proceeding with strike action today. Consequently the operations at the colliery have stopped,” CoAL said in a statement.
CoAL said 176 of the 368 workers directly employed at Mooiplaats are NUM members.
The colliery produces 6,000 run of mine tonnes of coal per day, it added.
The action comes against the backdrop of a wave of illegal strikes including a bloody 6-week stoppage at world No. 3 platinum producer Lonmin which unleashed violence that killed 45 people last month.
Illegal strike action is currently taking place at mines operated by Anglo American Platinum, the world’s top producer of the precious metal, and AngloGold Ashanti.