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Platinum Union Agrees to Take Wage Plan to Members to End Strike

The world’s three largest platinum companies and the biggest union at their South African mines agreed on a wage deal that the labor organization will take to its members in a bid to end a 20-week strike.

“‘In-principle’ undertakings have been reached with the leadership of the Association of Mineworkers and Construction Union in respect of wages and conditions of employment,” Impala Platinum Holdings Ltd. (IMP), the world’s no. 2 producer, said in a statement on behalf of itself, Anglo American Platinum Ltd. (AMS) and Lonmin Plc. (LMI)

The companies expect to get feedback tomorrow. The AMCU is meeting members at various mines today to obtain members’ opinion on the proposal.

More than 70,000 members of the union have been on a strike over pay since Jan. 23, forgoing 9.9 billion rand ($926 million) in wages and costing the producers 22.1 billion rand in revenue.

Impala shares surged 2.6 percent to 116 rand by 1:34 p.m. in Johannesburg. Anglo American Platinum added 1 percent to 483.13 rand, while Lonmin surged 9.8 percent, the most since April 16, 2013, to 260 pence in London.

Source – Andre Janse van Vuuren, Paul Burkhardt and Neo Khanyile , Bloomberg