Government-mediated talks in South Africa deadlock

Government-mediated talks aimed at ending a strike in South Africa that has hit half of global output of precious metal have ended with no breakthrough.

The talks between the Association of Mineworkers and Construction Union (AMCU) and the world’s top three platinum producers ended inconclusively on Monday in the capital Pretoria.

“They want to sleep on our demands, we are confident that progress will happen tomorrow,” said Jimmy Gama, the main negotiator for the AMCU.

The strike began on January 23, when some 88,000 mineworkers walked off from jobs at Anglo American Platinum, Impala Platinum and Lonmin, bringing the mining town Rustenburg to a halt.

Reports say the strikes have caused losses of up to USD nine million per day.

The AMCU is seeking a minimum monthly wage of 12,500 rand (about USD 1,200) for entry-level workers, which is more than double the current wage. According to the union, entry-level workers are currently paid about USD 460 a month.

The workers are also demanding better working conditions.

The negotiations are to resume on Tuesday and are expected to continue into the following day.

The South African mining sector has been paralyzed by a series of strikes and violent protests over the mineworkers’ low pay since August 2012. Dozens of people have also been killed in strike-related violence ever since.

The mining sector directly employs around 500,000 people and accounts for nearly one-fifth of the country’s gross domestic product.

South Africa possesses nearly 80 percent of the world’s known platinum reserves.