JOHANNESBURG – South Africa’s largest platinum mining companies this week warned of potential job losses, while 400 workers were sacked at a chrome mine and at least one mining contractor confirmed that it would retrench 860 workers.

The warning of potential job losses in a country with a 25.5% unemployment rate comes as the latest Statistics South Africa Quarterly Labour Force Survey revealed a loss of 8 000 jobs in the mining industry during the three months ended September.

Considering that many of the mining companies hit by industrial action only started dismissals in the past month, it was likely that the full impact of the dismissals related to the wildcat strikes would only be seen in the fourth-quarter report.

There was also potential for more job losses arising from possible downsizing at several platinum operations.

Gold and platinum mining companies in recent weeks threatened mass dismissals, offered moderate wage increases and promised once-off bonuses, many in the range of R2 000, to coax workers back to work.

But while the gold mining companies and some platinum producers are ramping up production, the country’s biggest platinum miner, Anglo American Platinum (Amplats), is still struggling to get its workers to return.

Amplats CEO Chris Griffith said on Thursday that the platinum industry was in "severe financial distress" and that high wage settlements to get wildcat strikers back to work could lead to job cuts.

"This is completely the wrong time to be offering unsustainable wage increases," he said in a radio interview, adding that it could lead more job losses.

Workers continued to strike at Amplats' Rustenburg, Union and Amandelbult mining operations, despite its offer to reinstate 12 000 dismissed employees and a R2 000 incentive to return.

The platinum giant is losing an average of 3 694 oz of platinum a day and has, to date, lost 141 640 oz owing to the wildcat strike, which started seven weeks ago.

Lonmin also gave unions notice of potential restructuring, with any downsizing of its 25 000-strong workforce to be implemented in early 2013.

The platinum producer, which lost about 110 000 oz of production after a violent six-week strike at its Marikana mine, announced an $800-million rights issue in an attempt to get back on its feet.

Platinum junior Atlatsa confirmed that it had extended until Tuesday its offer to striking workers at Bokoni to return, following intervention by community leaders at the mine.

Meanwhile, Xstrata dismissed 400 workers on an illegal strike at its Kroondal chrome mine, near Rustenburg, and mining contractor JIC said it intended retrenching another 861 employees in November, bringing its number of retrenchments for the year to 1 600.

In the gold mining sector, midtier producer Gold One pointed to possible retrenchments as it revised the structure of the recently acquired Cooke 4, previously known as Ezulwini mine. Cooke 4 was hit by illegal industrial action in October, resulting in the dismissal of 1 417 of the mine's 1 900-strong employee base, where operations were suspended for 30 days.

Strikes have ended at Gold Fields and Harmony Gold, while AngloGold Ashanti reported an illegal sit-in at two of its operations this week.

The illegal sit-ins have been resolved and operations at Mponeng and TauTona would resume at night shift on Sunday. The company, which is recovering from a crippling strike, had lost two days of normal work activity at Mponeng and one at TauTona.

Work has continued as normal at its Savuka, Great Noligwa, Kopanang and Moab Khotsong mines.

Earlier this month, AngloGold Ashanti indicated that it was losing about 32 000 oz of gold production each week after an unprotected strike, which started at Kopanang on September 20, and spread to its remaining South African operations on September 25. The strike came to an end last Friday.

Gold Fields indicated that it had lost over 65 000 oz of gold production and in excess of R1.2-billion potential revenue, while Harmony Gold said the Kusasalethu strike had cost it about 13 000 oz in lost production.

Coal of Africa Limited this week agreed to a 26% wage increase to end a six-week strike at its Mooiplaats colliery, in Mpumalanga.