Coal news and updates

South African coal producers table new offer in bid to end mine strike

South African thermal coal producers Friday issued a revised offer of wage increases to coal mineworkers unions in order to seek a resolution to a labor strike ongoing since October 4.

According to a statement issued Saturday from the South African Chamber of Mines -- which represents coal producers Anglo American Coal, Delmas, Exxaro, Kangra, Koornfontein, Msobo and Glencore -- the offer includes wage increases of 5%-7.5% for employees in higher categories and staggered increases of Rand 750-1,000/month ($56.49-$75.31/month) for lower category workers in the first year and 7.5% increases in year two, as well as living out and housing allowance increases depending on the company.

The offer would be made effective for two years from July 1, 2015.

Solidarity and the United Association of SA (UASA) unions have already accepted the producers' offer on September 14.

The National Union of Mineworkers (NUM), which represents 72% of coal mineworkers, is to take the offer to its members and negotiations with the Chamber of Mines will continue Monday.

"The coal producers are facing subdued demand and price pressures. The offers we have made are at the limit of what is affordable," the head of Employment Relations of the Chamber of Mines, Motsamai Motlhamme, said in a statement. "Further strike action will continue to undermine the sustainability of the industry and jobs."

The strike has had limited effect on FOB Richards Bay 6,000 kcal/kg NAR thermal coal prices; coal stocks at the Richards Bay Coal Terminal remained high and market participants predicted the labor action would be resolved soon.

Platts assessed FOB Richards Bay thermal coal basis 6,000 kcal/kg NAR and for loading within the next 7-45 days at $50.50/mt Friday, up 65 cents week on week.

source: http://www.platts.com