Update on Industrial Action
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.
12 September 2018
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Update on Industrial Action
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated primary vanadium producer, with ownership of high grade vanadium assets, announces that the unprotected industrial action continues and workers have not yet returned to work.
The Company advises that the illegal industrial action relates to claims by the local leadership of the majority union at Vametco, Association of Mineworkers and Constructions Union ("AMCU"), for a payment of cash in respect of an Employee Share Options Scheme ("ESOPS"). The Company believes this claim has no basis. On 23 May 2018, the Company and workers, as represented by AMCU, signed an agreement in terms of which an amount of R20,000 (pre-tax) was paid to each bargaining employee, as compensation for historical payments that could have been paid had an ESOPS structure been in place. The agreement constituted a full and final settlement for any historic ESOPS liabilities of the Company. Furthermore, at the time of the illegal strike, the Company had commenced constructive discussions, led by the national leadership of AMCU in respect of a new ESOPS structure going forward.
The Company has taken all reasonable steps to urge workers to stop the illegal strike and return to work. These steps include:
· Meeting with local and regional leadership of the union to discuss the ongoing strike in an effort to resolve it.
· Engaging directly with workers urging them to return to work and explaining the consequences of continuing to participate in illegal industrial action.
· Issuing workers with appropriate ultimatums in line with the labour laws of South Africa, while simultaneously urging dialogue with the Company.
· Applying for an interdict/injunction to declare the industrial action illegal and order a stop to intimidation of non-striking workers as well as to obstructing access to the mine for other workers.
The Company advises that to date:
· Its application to the labour court was granted with an order (a) to all striking workers to return to work and (b) for all harassments and obstruction of access to the mine and plant to stop, failing which they would be held in contempt of court.
· It remains committed to having an ESOPS structure for workers and has commenced constructive negotiations with national leadership of AMCU in this regard.
· It has invited all workers upon return to work to meet with management.
· It continues its open-door policy for engagements with workers who comply with the court order and return to work.
The Company has previously communicated its interest in building a sound partnership with its employees and outlined its commitment to a broader partnership with employees characterised by a shared success in the Company. This includes developing an appropriate ESOPS structure for the workers going forward. This commitment remains and guides the Company's approach as it engages with the national leadership of AMCU with a view to resolving the dispute imminently.
The Company will update the market as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:
"While the ESOPS issue is a historical issue that pre-dates Bushveld Minerals' acquisition of Vametco, we are determined to resolve it through negotiations in a manner that is both respectful and mutually acceptable. We have communicated that a sound relationship with all our stakeholders, not least our workers and local communities, is an important part of our strategy and we trust that our good faith will in time be lead to a fair and permanent solution. Bushveld's Management is proactively dealing with the matter and satisfied with the approach adopted to resolve the situation without delay."
Enquiries: info@bushveldminerals.com
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Bushveld Minerals |
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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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Ewan Leggat |
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Richard Morrison |
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Alternative Resource Capital |
Joint Broker |
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Rob Collins |
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+44 (0) 207 186 9001 |
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Alex Wood |
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+44 (0) 207 186 9004 |
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Tavistock |
Financial PR |
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Charles Vivian / Gareth Tredway |
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+44 (0) 207 920 3150 |
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Lifa Communications |
Financial PR (South Africa) |
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Gabriella von Ille |
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+27 (0) 711 121 907 |
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