STRIKE IN GLENCORE XSTRATA CHROMITE MINES IN SOUTH AFRICA

In Helena Chromite mine 200 miners were dismissed by Glencore Xstrata after three ultimatums to get back to work. The strike was considered illegal and was followed also by the workers of the two other mines of the company in SA: Magareng and Thomcliffe.

Most of the miners belong to the Miners and Construction Union (AMCU) that in these days is fighting with the strong National Union Miners (NUM) for affiliation and wages agreement.

The strike is in solidarity with one miner that claim he was injured by a shift foreman.

Ferro-Chrome quoted on 28th May  at 2,42 US$/Kg , the same level of the last six months. 75% of chromite world reserves are located in South Africa. Ferro-Chrome maximum price was attained in July 2008 at 6 US$/Kg.

The miners strike has affected the South African Rand (ZAR) rising the US$/ZAR ratio to a maximum of 9,58. Labour costs are going up continuously.

Glencore Xstrata share price went down from 350 GBX (Pence Sterling) May, 22nd  to 323,1 GBX May, 31st. In July 2011 shares were at 500 GBX.