Impala Platinum confirmed yesterday (26th August) that workers at its Rustenburg platinum mine will strike for a third day on Thursday, Bloomberg reports.

The company's employees at the South African facility downed tools on Monday evening after rejecting a pay increase offer of ten per cent to hold out for a better deal.

Impala spokesman Bob Gilmour told the news provider that the National Union of Mineworkers (NUM) is demanding a 14 per cent hike plus housing and travel allowance.

Although the strike is currently only occurring at Rustenburg, the NUM has warned that it could spread to Impala's interest at the Marula mine and its refinery at Springs.

"Its bad, there is no agreement, the strike continues. All of Implats could go on standstill, it's getting worse," Eddie Majadibodu, NUM Head Negotiator at Impala, told Reuters.

Mr Gilmour confirmed this week that the industrial action at Rustenburg could cost the world's second-largest platinum producer as much as 15,000 oz per week in output.

However, Walter de Wet, an analyst at Standard Bank, which is the largest bank in Africa, has played down fears that the strikes could have a major impact on the company.

In a report quoted by Bloomberg, he noted that Impala's smelter operations have not been affected, thus allowing it to call on about three weeks' worth of stockpiles.

"We doubt that strikes at platinum mines in South Africa will drive a rally in either platinum or palladium," he wrote.

"As long as the strike at Impala lasts less than three weeks and Impala's smelters are unaffected, we foresee limited impact."

Meanwhile, Impala confirmed today that it was "disappointed" after its gross platinum production in the 2009 financial year declined by 11 per cent to 1.7 million ounces.

The figure was slightly lower than the 1.8 million ounces originally projected by the company, but it expressed its belief that the future is bright for pgm prices.

"A sustainable appreciation in the platinum price is forecast over the medium term in line with improved fundamentals," it said in a statement.

"The increase in dollar liquidity following quantitative easing measures is expected to be broadly supportive of platinum group metal prices."

Although the group is only expecting 1.8 million ounces of output in a "difficult" 2010 fiscal year, Chief Executive David Brown added his weight to the price recovery theory.

"That's the worst of it. We are looking for an improvement going forward," he said in an interview with Bloomberg.

Mr Brown also told the Wall Street Journal that the recent ground fall accident at Rustenburg, which killed mine workers, will result in a loss of about 50,000 oz of output.

Sources:

Impala Says Worst of Slump in Platinum Demand Is Over (Update2) (27/08/09)

UPDATE 1-Implats Fy earnings drop, sees price stability (27/08/09)

Impala Platinum Says Labor Talks Broke Down (26/08/09)

Platinum Mine Strikes to Have 'Limited' Impact, Standard Says (26/08/09)

SAfrica union says strike may affect all of Implats (26/08/09)

INTERVIEW: Implats Eyes FY 2010 Output Up Slightly To 1.8M Oz (27/08/09)

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