Unprotected Industrial Action Resolved
Market Abuse Regulation ("MAR") Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
21 April 2021
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Unprotected Industrial Action Resolved
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider, with ownership of high-grade assets in South Africa, ("Bushveld"), reports that the unprotected industrial action at its Vametco operation has been resolved and workers have started safely returning to work.
As previously reported the unprotected industrial action related to expectations of payments under the Employee Participation Plan ("EPP") at Vametco. Following discussions between management and the Association of Mineworkers and Construction Union ("AMCU"), the recognised labour union at Vametco, an agreement has been reached, and AMCU has notified its members to return to work. The industrial action was resolved on the following basis:
- Recognition of the recently signed EPP Agreement based on which any EPP payments are determined based on audited results of Vametco, and, where applicable, are paid as a function of the company's profit performance;
- Recognition of loss of earnings relating to production bonuses during the 35-day maintenance programme, in respect of which the Company and AMCU have agreed that Vametco will pay each employee a payment of R4,500 (post-tax);
- No work no pay principles apply; and
- Acknowledgement of the illegal nature of the industrial action and the recognition of the Company's rights in pursuing appropriate remedies.
Plans are underway to engage with employees on the details of the recently signed EPP agreement as well as to review the Company's production compensation framework to improve alignment with the company's operational targets.
Care and maintenance activities were conducted throughout the period to enable a smooth start-up.
The impact, if any, of these five days of industrial action on production will be provided in the upcoming quarterly production report.
ENDS
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Fortune Mojapelo, Chief Executive Officer |
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Chika Edeh, Head of Investor Relations |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Richard Morrison / Charlie Bouverat |
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Grant Baker / Richard Parlons |
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Peel Hunt Limited |
Joint Broker |
+44 (0) 20 7418 8900 |
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Ross Allister / Alexander Allen |
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Tavistock |
Financial PR |
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Charles Vivian / Gareth Tredway / Edward Lee |
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+44 (0) 207 920 3150 |
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, vertically integrated primary vanadium producer. It is one of only three operating primary vanadium producers, owning 2 of the world's 4 operating primary vanadium processing facilities. The Company produced more than 3,600 metric tonnes of Vanadium in 2020. The Company is funded to grow its production to more than 6,800 mtVp.a. by 2025 (almost double the achieved production in 2020), and could, subject to funding, increase its production to more to 8,400 mtVp.a. over the same period.
Bushveld Minerals owns a diversified vanadium product portfolio serving the needs of the steel, energy and chemical sectors. Bushveld Minerals participates in the entire vanadium value chain through its two main pillars: Bushveld Vanadium, which mines and processes vanadium; and Bushveld Energy, an energy storage solutions provider. Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com .
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