The South African Rand is trading close to three-week lows against the US Dollar as workers at platinum producer Lonmin staged a wildcat strike, raising fears that South Africa could face another period of turbulence in its mining sector.
The wildcat strikes have halted work at all of Lonmins mine operations causing the company’s share to slide by 6% and reignited investor jitters over a possible repeat of the violent strikes that heavily impacted the nation’s economy last year.
The platinum towns of Rustenburg and Marikana remain a volatile flashpoint of labour unrest after 34 protestors were shot and killed by police in a single day last August. With job cuts and pay negotiations due to be announced fears are growing that a new wave of strikes could hammer the production of gold and platinum.
A spokesman for the National Union of Mineworkers (NUM) has said that Tuesdays protest is the result of anger over the killing of a local organizer from a rival union over the weekend. According to police a 46-year old man who was ‘alleged to be the regional organiser for the Association of Mineworkers and Construction Union (AMCU)’ was shot dead in a Rustenburg tavern.
The two unions have been battling each other in what appears to be a turf war. Social tensions in the area have been stoked by plans by Anglo American Platinum, the world’s top producer of the precious metal, to slash 6,000 jobs in a bid to restore profits. That is less than half the 14,000 initially targeted but unions have still vowed to fight against the lay-offs.
Current South African Rand (ZAR) Exchange Rates
The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1088
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0837
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0711
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1092
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.1861
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.0549
The Euro/South African Rand Exchange Rate is currently in the region of: 11.9410
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1558
(Correct as of 10:15 am GMT)
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