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Amplats Refuses To Follow In Lonmin's Footsteps, Fires 12,000 Striking South African Workers
Several weeks ago, the platinum producing company that started it all (after police killed 34 of its striking workers at its Marikana South African mine) Lonmin, conceded and agreed to a 22% wage hike. In doing so it once again proved that in game theory he who defects first, defects best. Shortly thereafter the strike spread to all other South African mining industries, and has even spilled over into the trucking industry, whose ongoing strike has crippled the country and threatens to paralyze all commerce. The only reason for the continued worker boldness: Lonmin folding to worker demands, in the process empowering all other workers in the African country to demand equitable treatment. Which is why today's news that that "other" platinum miner in South Africa has decided to go the opposite route, and instead of yielding to worker demands for a raise, has gone and fired 12,000 workers taking part in a three-week strike. How this dramatic shift in the balance of power affects the already struggling country, and its mining sector remains to be seen. However, if recent events are any indication, he doubt local workers will just put down their banners and go back to work as per the old status quo. In the meantime, look for ever less platinum,and gold, to be produced by this mining powerhouse.
From Reuters:
Two months of labor unrest has spread from mines to other parts of Africa's biggest economy, causing political problems for President Jacob Zuma and his ruling African National Congress (ANC), the veteran liberation movement long closely tied to unions.
Shell said on Friday it could not honor fuel delivery contracts around Johannesburg because of a two-week truckers' strike. Police shot dead another striking miner overnight, taking the death toll to 48 in the worst labor unrest since the end of apartheid.
The rand fell two percent to within sight of a three-year low against the dollar amid fears the (ANC) is powerless to manage the spreading labor unrest.
Zuma has been criticized for his low-key response, especially after police killed 34 strikers at Lonmin's Marikana platinum mine on August 16.
In a speech to business leaders late on Thursday he put a positive spin on the situation, stressing that since the end of white-minority rule South Africans have shown "the capacity to overcome difficulties when we work together".
"We should not seek to portray ourselves as a nation that is perpetually fighting," he said
And while the government is hopeless to do anything, casualties pile up:
More than 75,000 miners, or 15 percent of the workforce in a sector that accounts for 6 percent of output, have been out on unofficial strikes and tensions with security forces and mining bosses are running high.
Near the "platinum belt" city of Rustenburg, 120 km (70 miles) northwest of Johannesburg, workers said a miner was killed by a rubber bullet fired by police overnight.
"He was shot here by the police," Mbubhu Lolo, a striker from Anglo American Platinum, also known as Amplats, told Reuters, pointing to his midriff.
Police would not confirm the cause of the death, although the ground nearby was strewn with spent rubber-bullet shell casings and teargas canisters after clashes involving water cannon the previous evening.
On Friday, protesters in a shanty town near the Amplats mine barricaded streets with rocks and burning tyres, watched by a contingent of more than 30 riot police backed by armored vehicles.
Earlier in the week, strikers torched an Amplats training centre and two conveyor belts, making it harder to restart operations when it does manage to resolve the standoff.
In the meantime, the entire economy is grinding to a halt:
The mining sector unrest has shaken investor confidence, and signs of it spreading into manufacturing - which accounts for 15 percent of output - and an expanding truckers' strike have caused even more alarm.
"There is fuel available across the country, so the issue is not fuel supply, but the challenge is delivering it safely to our retail sites," oil giant Shell said after invoking a "force majeure" clause that allows it to break contracts due to situations beyond its control.
Other petrol companies are holding their breath, especially around the commercial hub Johannesburg, but have not yet followed Shell's move.
Raising the stakes in its two-week stoppage by 20,000 truckers, the SATAWU transport union said it wanted co-workers on South Africa's railways and ports to strike next week, a development that would affect coal and other mineral shipments.
Coal output from one of the world's biggest suppliers has so far been unaffected but any disruption could hit power utility Eskom, which is already struggling to prevent a repeat of a 2008 power crisis when the grid nearly collapsed. Some 85 percent of South Africa's electricity is generated by coal-fired plants.
Many supermarkets and logistics firms are running on back-up plans because of the truckers' strike. U.S. car giant General Motors said production at its Port Elizabeth plant on the south coast has been affected.
All that remains now is for the USDZAR to continue surging, hyperinflation to quietly come knocking in a full repeat of Iran, and for the government to be replaced by yet another technocrat instituted by none other than the bank with all the tentacles, and which already controls North America, and Europe: Goldman Sachs. Remember: Africa is the only continent left that still has secured debt capacity - the rest of the world has long been tapped out.
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That will not end well for Amplats since that's like batting a hornet's nest to get rid of the hornets.
MNU Agent: MNU! We're serving termination notices.
Worker: What is "termination"?
HH, ever seen the film 'Zulu' ?
Of course.
Like many well educated Americans, I have seen all three* films about South Africa: Zulu, The Gods Must Be Crazy, and District 9.
I have tried Rooibas tea.
Thus, I am now an expert on South Africa.
* Lethal Weapon Two does not count, it was about LA, although Patsy Kensit was smoking hot...
Deliciously. Shame that her charachter died. I would have liked to see more of her.
They could have made it a love story..
No problem. Click on the photo.
Just clicked on photo.....................still smiling. :-)
Excellent work.
Thanks. This is going to be my lucky day.
I clicked as well. Does this mean I picked up a STD?
Say it ain't so HH, say it ain't so.
.
A suddenly turgid dingaling?
Bernanke can just print more Africans.
There Will Be (more) Blood.
http://en.wikipedia.org/wiki/There_Will_Be_Blood
http://www.newsdaily.com/stories/bre89119j-us-indonesia-mining-gold/ It's creeping closer everyday.
Indonesia has shut down the gold mines. Long gold and silver
No need for Bernanke to print any more Africans, though, as the miners' strike is surely contained and will not spread to the broader economy, and in any event is only transitory. Besides, who needs gold and platinum anyway? They are obviously not money, and employment (in mining or anywhere) is only a tradition.
So let it be written, so let it be done.
Rumors are now swirling about a strike by the South African Printers' Union.
'tis an ill wind which blows toward the rolls of linen.
Have to go long on black ink then, suppose?
As to frontrun the fed, i mean
And for that my PM and specialty minerals portfolio thanks you. Awesome.
Is "blood in the clay" anything like "blood in the streets"?
Maybe, depends on who's clay and who's streets are you are talking about. Say it with me "petrodollar" or "commoditydollar", well for now anyway.
this piggy thinks rhodium will be the biggest surprise
This piggy is waiting for the silver cartel to supernova, before perhaps making that trade.
This piggy is sure about rhodium.
The silver cartel supernova could be lightyears away
This little piggy is long on roast beef.
And this little piggy said, "wee wee wee wee," all the way home (after losing his physical Pt. in a tragic boating accident).
with all these boating accidents happening lately, future archeologists will think that the spanish 18th century armada went over the american lakes...............and rewrite history
at least, that''s what you told the IRS, right?
Rhodium? 10K to 1100. LOL...no thanks.
This piggy says GOLD & SILVER bitchez....once 1800 is breached its Blue Sky.
1800 was breached last year.
Meanwhile, I'm hoping for another blue light special.
https://www.quantsig.net/live.html#?&charts=m24h,hrs
Of course it was. I meant right now, with 1788/1795/1810 levels being taken out (london fix).
Then up to 1896 and the all time high.
Rhodium may do well, I dont know. That chart looks absolutely horrible though.
I don't do Rhodium. The deepest I go in PMs is Platinum. Any deeper and I think you got to be a real specialist, which I am not.
Rhodium?
He is mad who trusts in the tameness of a belly-pinched wolf.
Not by my whiskered jowl, sayeth the the first little pig.
-john branyan
Maybe a mining powerhouse in Plat, but no longer in Au.
Fucking hell. Thats a bit strong sacking 12,000 folk in one go.
Its not like you can phone a mate at 7pm and him for a bit help the following day now is it? Jesus, I bet I dont even have 12 good friends, never mind fucking 12,000 mumbers for grafters.
I would be on the phone all night trying to cover that shift bitchez....
Glad I purchased some physical Pt. a few months ago. Made a nice return, already. Now Ben needs to print more Africans (love that, so I'm stealing it), to fill the void.
This is terrible for those who got fired, but it is a nice trading opportunity for others. I have added to my Platinum CFD position recently.
Forget this crap. Iran is in hyperinflation. All the hyperinflation experts need to tell us what to expect next in Iran. Then we need to see if their predictions pan out.
Here's your bellwether, hyperinflationists. What happens next in Iran?
We send in the drones, cruise missiles, and finally the marines?
Democracy breaks out?
That depends on why they are experiencing loss of confidence in the Rial. Has their central bank been printing money, unbacked by production, to make up for shortages? Or is it the fear that the government will fall, taking the currency with it? Or are people dumping the Rial for currency that can be spent in whatever nation they plan to flee?
If it's simply a temporary loss of confidence, and not money printing resulting in dilution or a permanent impairment in oil production, then buying some Rial and holding it could pay off if war never comes.
Pt prices are actually down (so far today). Price of of Pt will likely move up only if the outages last a while. I do NOT expect the short-term price of gold to move much (but my short-term prediction record is poor).
I still believe that all the PMs are good holdings: Au, Pt and Ag. Buy any and all. Even some some palladium (Pd) or rhodium (Rh) if you want something exotic. But, gold, silver and platinum are sufficient for PM diversification.
The Tungsten Trio .... Gold plated tungsten ingotz dipped in Rhodium, Bitchez !
"The answer my friend, is blowing in the wind, the answer is blowing in the wind."
"The answer my friend, is blowing in the wind, the answer is blowing in the wind."
Actually if you really want exotic check out Iridium, Ruthenium and Rhenium.
EXTREMELY rare and undervalued metals
just curious... wtf is hapenning with oil..?
Round trips based on suply and demand? 3 days we cant decide what demand and suply is.... m..f..ckers
It was just idiots like me who sold the futures few days ago and had to cover after profits vaporized...
.Zuma has been criticized for his low-key response, especially after police killed 34 strikers at Lonmin's Marikana platinum mine on August 16
"He was shot here by the police," Mbubhu Lolo, a striker from Anglo American Platinum, also known as Amplats, told Reuters, pointing to his midriff.
Police would not confirm the cause of the death, although the ground nearby was strewn with spent rubber-bullet shell casings and teargas canisters after clashes involving water cannon the previous evening.
It's probably a good idea that we all turrn in our guns so we can relly on the government to watch over us.
If the strike takes out rail delivery and urban & mine power delivery, then 34 dead will seem like a relatively low key response. Unfortunately, 34 South Africans being violently killed has about the statistical significance of a 3-day weekend, and the masses haven't even been motivated yet to collect the millions of guns "lost" in boating accidents and the like during the years of "disarmament"
Raising the stakes in its two-week stoppage by 20,000 truckers, the SATAWU transport union said it wanted co-workers on South Africa's railways and ports to strike next week, a development that would affect coal and other mineral shipments.
Naw, just stock up on rubber bullets.
Anti-war.com has a great article on the political economy of South Africa.
http://original.antiwar.com/pilger/2012/09/20/apartheid-never-died-in-so...
Since we Whites have been removed from power, nature goes it's way and SA is turning into a black country again. Invest accordingly.
Hyperinflation is here in Los Angeles.
http://www.latimes.com/business/la-fi-gas-prices-20121005,0,2326954.story
Never a good idea to cave in to a mob of rioting blacks, whether they are miners, obese Chicago teachers or Obama supporters on welfare... it is a losing game... like trying to train an ape to conduct a symphony...
Train apes to mine ! Put them into remote controlled electric shock training harnesses .... directed from a NASA style, off site "Mission Control" room .... manned by Indian techno-geeks in Mumbai ! What, apes are much more expensive to procure than blacks ? Nevermind !
Outsource the work to Chinese coal miners !
From Amplats corporate values:
We value and care about each other:
We all have a right to be heard and a duty to listen to others.
We care for each other's well being and treat each other with dignity.
http://www.angloplatinum.com/about/about_sub/strategy.asp
Bwahahahahah !!!
Where in Amplats statement did they pledge to meet any and all competitor's wage hikes, and respond to extortion with tea and crumpets?
The Chicoms are gonna fix Africa just fine, that's the deal, hands off the middle East and they get free reign over all of Africa.
Roadside pedestrians of Africa, you have hereby been warned.
"Dammit, stepped in a pile of crap again! And what the Hell is that in it .... dog toenails??"
Their website banner says 'Our people are our best assets'. Obviously doesn't mean the workforce then but it is next to a photo of some black miners. I'm confused
Major moves in the South African Rand today...
They'll just hire a bunch of these buggers:
http://www.dailymail.co.uk/sciencetech/article-2212807/21st-Century-alchemy-The-tiny-bug-turn-common-elements-24-carat-GOLD.html
OT but interesting. Now if I could just find ones to eat and shit out all the gold on the computer scrap I go through in a year...
Yes but Cyril Ramaphosa is the key to the issue and his corrupt practices
http://www.ocnus.net/artman2/publish/Africa_8/Marikana-Massacre-All-this...
Whats the difference between South Africa and a clapped-out old ex-whore? South Africa is still fucked
If you look at European car sales, who needs platinum these days?