S. Africa mining union hints at progress in strike talks

Cape Town (AFP) - The leader of an 80,000-strong South African platinum strike suggested Wednesday that a proposal from an independent labour arbitrator could be the basis for a deal to end the stoppage.

Association of Mineworkers and Construction Union president Joseph Mathunjwa hinted that a confidential proposal from the Commission for Conciliation, Mediation and Arbitration could provide a way forward.

"Once the employer concedes to the proposal of the CCMA, that would unlock the engagement to be taken to the next level," Mathunjwa said. "For now we are still in talks."

The CCMA has kept the proposal private, but the AMCU wants entry-level workers to be paid at least 12,500 rand ($1126) a month, which the platinum companies say is not affordable.

Mathunjwa indicated that the AMCU would continue its strike, now entering its third week, until a deal is reached.

"We will continue the strike until the workers give us a mandate. They are still saying it is too early for them. They want the status quo to change."

Platinum companies had offered a wage increase of at least seven percent each year for three years, an offer that was rejected by union members.

Earlier this week the chief executive of platinum giant Lonmin, Ben Magara, said the wage offer was "more than reasonable" given South Africa's inflation rate of 5.4 percent.

Roger Baxter, an economist at the South African Chamber of Mines, claimed that the strikes were costing the country around $34 million a day. That figure could not be independently verified.

Magara said Lonmin, the world's number three platinum producer, is losing about 3,100 ounces of refined output a day due to the strikes.

Its rivals Anglo American Platinum and Impala Platinum have also been hit.

South Africa's northern platinum belt has been the scene of work-related bloodshed since some 34 platinum miners were shot dead by police during a strike at Lonmin's Marikana mine in August 2012.

On Tuesday police said they used stun grenades and rubber bullets to disperse 3,000 "violent" striking AMCU miners.

The violent strikes have hit investor confidence in South Africa, which is estimated to produce as much as 80 percent of the world's platinum.