INDUSTRY INSIGHT The end of the strike has not meant the beginning of renewed production since employees need to be re-integrated back into the working environment Platinum strike effects Far from over! While the five-month wage strike in South Africa’s platinum sector may have finally been resolved, the repercussions on the industry, the country and particularly the affected communities are long-term. Sadly, it’s the workers themselves, their communities that rely on the mine workers and the parallel informal and formal commercial businesses that have been the hardest hit, Warren Beech, partner and head of mining at Hogan Lovells, tells Vicky Sidler. a few more months before the first piece of ore can be extracted safely again.” IN SHORT The effects of the platinum strike are long-term, with mines unable to immediately resume full production, investor confidence taking a knock, and local communities struggling to overcome crippling debt. T he five-month platinum strike has been the longest and costliest that South Africa had ever seen, with over 70 000 miners downing tools at Impala Platinum, Anglo American Platinum and Lonmin. It had cost the companies about R24 billion in lost output and workers R10.6 billion in wages by the time it ended on 24 June. “The integration period is potentially high risk in terms of health and safety issues, and will require commitment from all stakeholders,” explains Beech. “We’re looking at a timeline of six to eight weeks before workers can practically and safely return to the workplace, and possibly The next challenge will be trying to ramp back up to full production, which Beech reasons will be difficult over the December period. “In recent times, mines have started taking time off between Christmas and New Year’s Day, which probably won’t be an option for the strike-affected mines this year. However, even if the mines continue through December, it will be a challenge to keep the workers motivated to work at full The strike pushed the economy into contraction in the first three months of this year as mining output plunged, especially because South Africa accounts for more than two- thirds of mined production of the metal. The end of the strike has not meant the beginning of renewed production, however, since employees need to be re-integrated back into the working environment, which includes an extensive training programme and medical examinations, together with planned workplace inspections. 14 MINING REVIEW AFRICA ISSUE 8 2014 The five-month platinum strike has been the longest and costliest that South Africa has ever seen