Both sides of the ongoing labour dispute at the Stillwater mine have indicated that they are keen to resolve their differences.

Yesterday union workers at the Stillwater Mining Company went on strike after voting against a proposed three-year wage agreement.

Around 850 underground mine and processing employees took action, after an initial agreement between management and the Paper, Allied Industrial, Chemical and Energy Workings International union fell apart.

Yet Stillwater Mining chief executive Frank McAllister told Mineweb that he still had faith in his workforce, adding that they were committed to the firm.

He said the process team had ensured that the cessation of work had been done in a safe manner, and noted that both the union and management had decided not to shut the mine down completely - the furnace which processes the ore is currently in stand-down mode.

Mr McAllister also said that production at the Stillwater mine - which is scheduled to produce 430,000 ounces of platinum and palladium this year - has so far not been affected.

However, with the mine accounting for nearly three quarters of Stillwater's overall production, relations could become more strained if no compromise over the pay negotiations is reached.

Union officials told the Billings Gazette that the crux of the dispute is the pension plan, with cost-of-living raises and the firm's unpaid sick days policy also under scrutiny.