Speaking during Kumba Resources’ first-half results presentation on Wednesday, chief executive Dr Con Fauconnier said most mines were still running despite the current strike action and that the company was still managing to meet the demands of customers.
He added that there should not be a major impact on the anticipated stronger results in the second half. However, he did say this could change if the strike became protracted, but that at the moment it was not acrimonious and a settlement was likely.
“Most mines are still running and we are still managing to meet the needs of our customers. It hasn’t been acrimonious and we are looking for a settlement with a team meeting the unions today [Wednesday],” said Fauconnier.
Fauconnier highlighted the strong fundamentals such as the buoyant zinc market, higher contract prices on iron ore and thermal coal, weak rand and plant contributions that had led to the 61% leap in headline earnings per share to 508 cents for the six months ended June. He said Kumba should deliver even stronger results in the second half, with the strike not having a major impact if it was resolved.
“Against this background Kumba should deliver stronger results in the second half,” he said.
“The strike should not have a major impact on the results, unless it became protracted,” Fauconnier added.
Kumba announced earlier it would meet with striking trade unions on Wednesday to discuss a final revised wage settlement offer made by the resources company on Thursday and Friday last week.
The unions involved are National Union of Mineworkers, Solidarity, the National Union of Metalworkers of SA and the Building Allied Mining and Construction Workers Union.
The unions are currently engaged in strike action at some of the group’s subsidiaries. Following Solidarity’s tentative agreement to the settlement offer at the weekend, the union decided to join the other unions in strike action from Tuesday.
The final settlement offer includes an 8% wage increase for lower grades and a 7% across-the-board wage increase for other grades. The housing allowance will increase by 10% for all bargaining-unit employees.
“Kumba believes that this is a reasonable and responsible offer,” the group said in a statement.
Subsidiaries involved are Sishen Iron Ore Company, Kumba Coal and Glen Douglas Dolomite – I-Net Bridge