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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (38959)	8/13/1999 4:23:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116796

Sounds like the South Africans are trying to convince the CBs to sell gold slowly and only on strength. But the key to the gold price is leasing more than sales. If the CBs keep lease rates at 3% or more, they will be able to sell a lot of gold without hurting the price very much.

To: Alex who wrote (38959)	8/13/1999 4:51:00 PM
From: goldsnow	Respond to of 116796

Strike threat hits SAfrica gold shrs,talks Monday 10:15 a.m. Aug 13, 1999 Eastern By Darren Schuettler JOHANNESBURG, Aug 13 (Reuters) - The threat of a national strike in South Africa's gold and coal mines next week hit mining shares on Friday as unions and management prepared for last-ditch talks on Monday. About 150,000 members of the National Union of Mineworkers (NUM) plan to down tools on Tuesday if talks with the industry's Chamber of Mines fail to resolve a dispute over wages. A national mining strike, the first since 1987, would exacerbate the crisis in an industry already reeling from record low commodity prices, analysts said. ''If we settle on Monday, then no strike. If we don't settle on Monday then on Tuesday the strike takes place,'' NUM spokesman George Molebatsi told Reuters. AngloGold, the world's biggest gold company, and coal miner Duiker Ltd would be exempt from labour action because they signed new agreements to replace the two-year deal which expired on July 1. ''It is serious and we would hope that we can settle without this type of industrial action,'' a Chamber spokesman said. The strike threat comes as South Africa's gold industry is facing mine closures and thousands of job losses due to low gold prices after Britain announced plans in May to sell more than half its gold reserves. Gold has enjoyed a modest rally in recent days, trading above $260 an ounce on Friday, but it is still nearly $30 below its level when contract talks began in May. The key Johannesburg gold index was off two percent on Friday, surrendering some of its recent gains. Tony Cadle, a mining analyst with Rice Rinaldi Turner in Johannesburg, said the NUM was trying to pressure other mining companies to sign a deal similar to the AngloGold agreement. ''They got a commitment from AngloGold, but the other smaller, marginal companies will not settle for similar wage increases,'' Cadle said. AngloGold signed a two-year deal that will give its lowest category worker, who earns a minimum 1,354 rand ($222) per month, a 10 percent increase in each year of the agreement. The highest category worker, who earns a minimum 2,691 rand per month, gets a nine percent hike over the same period. Other gold mining companies have offered between eight and 8.5 percent, while coal workers were offered up to 7.5 percent. The NUM is seeking an average nine percent hike for remaining gold and coal miners. South Africa's last big gold strike came at the height of the anit-apartheid struggle 12 years ago and paralysed mines for weeks. The strike was broken after 40,000 workers were fired. Labour analysts said the two sides today are not as far apart as they were in 1987 when the gold price was higher and the industry was not slashing jobs. ''There is job insecurity today and greater incentive not to go on strike and to settle,'' said Brian Allen, a consultant with Andrew Levy and Associates. South Africa's gold companies, having just delivered a mixed bag of June-quarter results, are bracing themselves for the next six months when low gold prices are expected to really bite. The gold slump has forced companies to lay off thousands of miners, slash capital spending, sell high-cost mines and write down the value of mining assets. ''I think it would be disruptive if they went on strike. It could result in further retrenchments and further cost cutting,'' said Cadle. A steady decline in the gold price since the late 1980s forced an industry-wide restructuring that has trimmed South Africa's gold workforce to 250,000 from 530,000 in 1987. ($ - 6.10 rand) Copyright 1999 Reuters Limited.