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Aflease Advises of a Strike at Bonanza South
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL (JSE) AFLUY (NASDAQ)
(Registration number 1921/006955/06)
ISIN: ZAE000061461 & Share Code: AFL
(`Aflease` or `the Company`)
Aflease Advises of a Strike at Bonanza South
Aflease Gold and Uranium Resources regrets to announce that the National Union
of Mineworkers today (Mon 19 September) began a strike at the Bonanza South gold
mine near Klerksdorp, along with an illegal underground sit-in.
Bonanza South is serving as a pilot project, as Aflease prepares to start mining
uranium at its nearby Dominion Reefs mine, which is expected to begin producing
uranium in the first quarter of 2007.
Substantial efforts had been made in recent weeks to avert the strike, with the
matter having most recently gone before the Commission for Conciliation,
Mediation and Arbitration (CCMA.)
Aflease has offered a three year wage agreement.
i) The increase for the current year would have been an effective 10%, which
is well in excess of the inflation rate of 3,5%, back-dated to 1st June 2005.
ii) This would have been followed by a 7% increase next year and an increase
of 7,23% in the third year.
iii) In addition, management agreed to jointly investigate the setting up of a
provident fund, into which employees could contribute on a voluntary basis.
Following the NUM`s refusal to accept this offer, and request for a certificate
from the CCMA to enable a strike to be mounted, Aflease was left with no other
option than to withdraw this offer.
The company has informed its workers that it will implement the `no work; no
pay` principle for the duration of any strike.
Management remains available for negotiation, and is eager to resolve the
dispute as soon as possible.
Said Aflease CE Neal Froneman:
`This strike is most unfortunate as we have begun to ramp up production at
Bonanza South, a mine which poured its first gold only at the end of June, after
the company had been out of production since the beginning of 2004.
`During the initial months, as forecast, the operation is not yet turning a
profit, and we have sought to impress on the union that this is a very sensitive
phase of the project.
`We accept that we have a duty to look after our workforce, and we have already
made a generous offer.
`However, we also have a duty to our shareholders to protect the Bonanza South
mine against the impact of unwarranted wage inflation.
`We deeply regret this strike, but it would be wrong to suggest to our workforce
that we have deep pockets, and that the strike can or will result in anything
other than a threat to their future employment.`
Contact: Neal Froneman 083 628 0226
Carol Smith 082 338 2228
John Fraser 082 331 7330
Date: 19/09/2005 03:06:07 PM
Produced by the JSE SENS Department
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