Archive - 2012

The group consists of permanent employees, who are acting as individuals and are not represented by any union.

Representatives of the group met with mine management for the first time late yesterday (Thursday, 4 October 2012) to deliver their demand for a R15 000 monthly salary increase to be paid to all Kumba employees.

Kumba concluded a two-year wage agreement with organised labour two months ago that makes provision for a salary increase of between 9 and 12%, which is well above the rate of inflation. Permanent staff below management level also benefit from Envision, an employee share scheme, that paid out R2.7 billion to 6 209 members at its first maturity date in December 2011. Each Envision scheme member who has been employed by the Company since its market listing in 2006 received a pre-tax cash payout of approximately R570 000 at the time. Envision scheme members also receive dividends twice a year which amounted to R33675 (pre-tax) per member in 2012.

Kumba suspended production at Sishen Mine yesterday due to the strikers blocking access to the pit, creating an unsafe environment for mining operations.

The strike is being dealt with in line with the Company's labour relations procedure, with due consideration to the safety of the majority of those workers who are not taking part in the illegal action and who wish to return to work. Sishen Mine employs approximately 12,700 workers.

Kumba has sufficient production from its other mines and stockpiles of finished product to continue supplying its customers for some time and is in constant contact with its stakeholders to update them on developments.

Kumba has been voted by its employees as the Best Mining Company to Work For in the 2012 Deloitte Best Company to Work For awards.

The Company will provide further updates as appropriate.