Impala Platinum revealed today (26th August) that industrial action at its Rustenburg mine in South Africa could cost up to 15,000 oz per week in lost output.

The workers' strike at the world's second largest platinum mine - which produced about one million ounces in 2008 - has entered a second day, according to a Bloomberg report.

Bob Gilmour, a spokesman for Impala, confirmed that the dispute is limiting output and could rise to a significant figure if it is not resolved in the near future.

"This is another day of lost production," he told the news provider.

The National Union of Mineworkers (NUM) has suggested that the action does not relate to Impala's ten per cent wage increase offer, but its delays in finding an agreement.

Union spokesman Lesiba Seshoka revealed that workers at Impala's precious metals refinery in Springs, which is located 30km east of Johannesburg, are also mobilised to strike.

"[The dispute is] about punishing Impala for the delays in delivering the agreement," he said in an interview with Bloomberg.

"Once workers are mobilised for strike action and you reach a last-minute agreement, it's going to be difficult to stop them."

However, Mr Seshoka also announced that the union will meet with its members today to gauge support for the action after an initial ballot suggested that most are in favour.

"From the looks of it, the majority oppose it [Impala's offer]," he told Reuters.

Reports indicate that some of the workers could be holding out for a 13 per cent wage hike, which would be almost double the current rate of inflation in the country.

Mr Gilmour added that Impala, which is the world's second-largest platinum producer, will meet with the NUM today in order to iron out the remaining problems.

"We will speak with the union in the course of the morning to see what the issues are," he said, according to the news provider.

Wage disputes in South Africa are viewed with great interest by the pgm industry as prolonged strikes will inevitably lead to a dip in production.

Sources:

Impala Strike Shuts Largest Platinum Mine Second Day (Update1) (26/08/09)

UPDATE 1-Most workers oppose S.Africa Implats deal, strike on (26/08/09)

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