| Thu 12 May 2011, 8:29 | | EPS - Eastern Platinum Limited - Update on the reported industrial action at |
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EPS
EPS
EPS - Eastern Platinum Limited - Update on the reported industrial action at
Crocodile River Mine Operations
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
May 11, 2011
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
UPDATE ON THE REPORTED INDUSTRIAL ACTION AT CROCODILE RIVER MINE OPERATIONS
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or
the "Company") wishes to clarify various reports with respect to recent events
at the Crocodile River Mine ("CRM") during the period of wage negotiations
that coincide with national elections.
Further to ongoing wage negotiations at CRM, a meeting was held on Thursday
5th May at CRM by the members of the National Union of Mineworkers ("NUM")
during which the Company`s most recent revised wage offer was communicated
to its members. This revised offer was rejected by NUM members.
On Friday 6th May, mine vehicles were driven by employees through the security
gate to the Zandfontein Mine causing damage to mine property. Employees then
embarked on unprotected industrial action. Mine services at both Zandfontein
and Maroelabult underground mines were also damaged, and for safety reasons,
the management at CRM instructed the mines to be vacated. Approximately 180
workers then proceeded to unlawfully occupy the mines. Mine management advised
employees to cease this illegal action, and simultaneously, a court interdict
against NUM and its members was granted that instructed NUM and the employees
involved to cease the action and vacate the mine. The workers involved made
several demands to management, as well as threats of damage to mine property
and underground infrastructure if management did not comply with these
demands. To safely resolve this situation, to prevent it from escalating, and
to safeguard the overall integrity of mine installations, management had
numerous meetings with NUM and instructed them to ensure that their members
vacated the mine and ceased their unprotected strike action. An offer was made
by mine management to resolve the situation but this was rejected by NUM
and/or the employees involved who refused to vacate the mine and made yet
further demands of management that were rejected. As these workers refused to
vacate the mine, the offer made by management was then withdrawn.
Following the failure to resolve this illegal action by some of their members,
NUM invited the Congress of South African Trade Union ("Cosatu") to assist in
negotiations with the instigators of the illegal industrial action. Certain
statements were made by the Cosatu and NUM representatives to their members in
order to encourage them to vacate the mine. There was no agreement in place
between CRM and NUM/Cosatu at this time. The workers involved in the illegal
action subsequently vacated the mine.
On Saturday 7th May, after the mine had been vacated, management temporarily
suspended operations at CRM pending the results of a safety inspection of the
shafts to inspect damage to mine infrastructure. The full extent of this
damage was subsequently found to have involved the sabotage of underground
electrical and pumping equipment that resulted in flooding, as well as damage
to the ventilation system. This was regarded as a serious threat to mine
safety, and in line with protocols as set out internally and by the Department
of Mineral Resources ("DMR"), further safety audits were made to assess damage
and to begin conducting repairs to ensure the safety standards continue to be
met. Employees were informed through their unions that CRM intended to suspend
mining operations in order to make the mine safe for employees. NUM was
informed that all employees involved in the illegal occupation and other
unlawful acts were suspended pending a full investigation.
To clarify certain allegations made by Cosatu, none of the NUM members
involved in the illegal action have been dismissed at this time and the
Company is conducting a full investigation of events, including statements
made by some workers that were forcibly prevented from vacating the mine.
Furthermore, no workers have been "locked out" as stated by Cosatu. The mine
progressively resumed operations once safety concerns had been addressed and
the mine concentrator continues to operate. However, there has been further
unprotected industrial action, including an unlawful blockade at the mine
entrance to intimidate and prevent non-striking employees from going to work.
If this situation continues, then the Company intends to deal with all workers
who do not report for work from the commencement of the morning shift on
Thursday 12th May 2011 in accordance with the legal procedure available to
CRM.
The Company wishes to state categorically that it has at all times acted in
good faith and within the protocols as set out in the application for safety
protocols and labour relations legislation, and conducts all its actions in
accordance within the legal framework governing such actions.
Eastplats and the management at CRM are deeply offended by the accusations
made by Cosatu that CRM exploits its workers, has a racist attitude towards
its workers, participates in "modern day slavery and human trafficking", and
discriminates against females with respect to maternity leave, or at all.
Eastplats is proud of its safety record at the mine (currently standing at
over 3 million fatality free shifts), the working conditions at CRM, the
conditions of employment for all its employees, including training programs,
housing arrangements and benefits, and its proactive social and labour plan.
At all times, the Company has acted in the best interests of safety and is
confident that it has the support of the DMR for its actions undertaken to
ensure a safe working environment for all employees at the mine.
"We regret these illegal actions by a very small minority of our employees at
CRM and hope for a speedy resolution to this issue", stated Ian Rozier.
Total shares issued and outstanding - 908,187,807
For further information, please contact:
EASTERN PLATINUM LIMITED
Ian Rozier, President & C.E.O.
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com
NOMAD:
Mark Williams / Ryan Cohen
Canaccord Genuity Limited, London
Email: MWilliams@canaccordgenuity.com / rcohen@canaccordgenuity.com
Tel: +44 20 7050 6500
JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
Email: johanf@psgcapital.com
Tel: +27 21 887 9602
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Cautionary Statement on Forward-Looking Information
Certain statements included herein constitute "forward-looking statements"
within the meaning of applicable Canadian securities legislation. These
forward-looking statements are based on certain assumptions by Eastplats and
therefore, readers are cautioned that forward-looking statements are not a
guarantee of future performance. There can be no assurance that such
statements will prove to be accurate and actual results could differ
materially from those expressed or implied in such forward-looking statements
due to factors such as general economic and market conditions, changes in
government legislation, controls, regulations and political developments.
Specific reference is made to the Company`s most recent Annual Information
Form on file with Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking statements.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise, except to the extent required by applicable laws.
Date: 12/05/2011 08:29:21 Produced by the JSE SENS Department.
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