Strikes at South African gold mines have shut about 39 percent of capacity, including at AngloGold (AGG) Ashanti Ltd. and Gold Fields Ltd. (GFI), as unofficial walkouts spread across the country in demand of above-inflation pay increases. AngloGold, the world’s third-largest gold producer, today said all of its South African mines have been halted. Gold Fields Ltd. also lost a metric ton, or about 32,000 ounces, of production after strikes at its KDC and Beatrix operations. A six-week walkout at Lonmin Plc (LMI)’s Marikana mine erupted into violence, with 46 killed including 34 shot by police. The miners secured wage gains of as much as 22 percent, more than four times the August inflation rate, before returning to work. “Workers are now demanding wage increases according to the ‘Lonmin settlement’,� David Davis, an SBG Securities Ltd. gold analyst, said in a note. “Strike action may well spread from other mines to Harmony’s mines and to other industries.� Coal of Africa Ltd. (CZA) and transport workers have also been on strike. Wage demands and direct action spread as workers sidelined traditional representatives for negotiating with management such as the National Union of Mineworkers, a backer of the governing political party. At Lonmin, workers appointed their own leaders. Julius Malema, expelled by the ruling African National Congress, has called for disruption and state control at mine operations. Employees are gathering at the Bleskop stadium, where their appointed leaders will report back on a meeting with mine owners negotiated by the Commission for Conciliation, Mediation and Arbitration yesterday, the South African Press Association said. Peaceful Action AngloGold fell 3.2 percent to 288.97 rand by 1:27 p.m. in Johannesburg. Gold Fields, the world’s fourth-biggest producer, declined for a third day, losing 1.7 percent to 103.69 rand. AngloGold workers striking since Sept. 10 at Kopanang were yesterday joined by staff at other operations, the Johannesburg- based company said today in a statement. The strike is peaceful and management hasn’t received any demands so far, Alan Fine, a spokesman for the producer, said by mobile phone. The company produces about 32 percent of its metal in South Africa. Gold Fields, the fourth-largest producer, is concerned that threats of violence against staff still working are rising, said spokesman Sven Lunche. A strike since Sept. 9 at KDC West spread to Beatrix yesterday. Workers struck at KDC East this month. There isn’t any suggestion the Association of Mining and Construction Union, a rival to the NUM, is orchestrating the disruption at AngloGold’s facilities, Fine said. The strikes were “obviously coordinated, but as to exactly how it was done, a lot of that is in the realm of speculation,� he said. Largest Producer Anglo American Platinum (AMS), the largest producer of the metal, has lost about 20,000 ounces of output as workers refuse to report for duty at its Rustenburg operation, the company said today. The stock declined 4.4 percent in Johannesburg trade. Impala Platinum Holdings Ltd. (IMP), the second-largest producer, raised pay to halt a six-week strike in January and February at Rustenburg, the largest mine producing the metal. Workers have since made new demands, Johannesburg-based Impala said Sept. 11. More than 20,000 freight transport workers are also on strike, demanding a wage increase of 12 percent, SAPA said. Harmony Gold Mining Co. said it’s unaffected by strikes. AngloGold produced about 306,000 ounces in South Africa in the first quarter and Gold Fields’ KDC West and Beatrix about 212,200 ounces. The nation’s gold output was 1.35 million ounces in the quarter, the Chamber of Mines says. It was the fifth- biggest gold producing nation in 2010, according to GFMS Ltd. To contact the reporter on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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