20110713
Reuters
JOHANNESBURG (Reuters) - South Africa's National Union of Mineworkers (NUM) said on Wednesday it was heading for a strike at the world's second largest platinum producer, Impala Platinum (Implats), because of a wage dispute.

NUM said it was demanding pay increases of between 13.5 percent and 14 percent on a one-year deal, almost triple the inflation rate, while the company is offering increases of between 6 and 6.5 percent on a three-year deal.

"We are heading for a strike once again," said Eddie Majadibodu, NUM's chief negotiator at Implats.

Implats' share price was little changed, trading 0.74 percent higher at 171.25 rand at 0823 GMT.

Company officials could not immediately be reached for comment. Last year, the union and Implats agreed on a 7.5-8 percent rise in wages after weeks of talks that narrowly avoided a strike.

Strikes are looming across South Africa's key mining sector, including at world number one platinum producer Anglo American Platinum, and in the gold and coal industries, as unions seek wage increases far above inflation.

Mining houses say they can ill afford such hikes as they are grappling with other soaring costs. Disruption to production could push up the prices of platinum and gold.