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Hi Kenpitt,

I have followed PLA in the past 24 months ... mainly for a trade here and there, I know their operations Smokey Hills has had a lot of problems and I believe safety has also been an issue in the past 12 months. There has been a lot of announcements "Smokey Hills Operations Update" where it clearly shows that the company was at war with its employees.

An example is on the 2nd Feb 2011:

"Platinum Australia Limited (ASX:PLA) advises that the majority of the employees of the mining contractor, JIC Mining Services (Pty) Limited (?JIC?), at the Smokey Hills Mine have engaged in unprotected industrial action."

9th Feb 2011:

"Platinum Australia Limited (ASX:PLA) advises that the mining contractor, JIC Mining Services ( Pty) Limited ("JIC"), obtained an interdict requiring all employees engaging in unprotected industrial action to return to work or face dismissal. Some 25 employees of the 600 employees did return to work, however the balance did not and have been dismissed."

3rd March 2011:

"Following the termination of the majority of their workforce as a result of unprotected industrial action, the mining contractor, JIC Mining Services (Pty) Limited, has re-employed approximately 25% of the previous workforce, hired a number of workers locally and transferred approximately 300 experienced workers from their other operations to reconstitute the workforce to previous levels."

30th May 2011:

"Platinum Australia Limited (ASX:PLA) regrets to advise that on the afternoon of Thursday 26 May an employee of the mining contractor at the Smokey Hills Mine, JIC Mining Services (?JIC?) was fatally injured in an incident while travelling home from the mine at the end of day shift."


One thing that I do agree is that dealing with all the BEE and "governmental procedures" is difficult. I think it just translate into "can you give me a bribe" to be honest. Even Nelson Mandela and Jacob Zuma (current president) have their own private gold mines that have not paid their orkers in like 6 months.

On the case of PLA I do believe that there were genuine workplace and community issues, and there were warning signs about this.

I guess the announcement today from PLA is just the result of all the past issues coming to a flashpoint. I would be talking to John Lewins (MD of PLA) as to why negotiations have not taken place previously to prevent this announcement where DMR has shut down Smokey Hills (abeit temporarily).

If Nkwe does ever mine the platinum I do expect more challenges to come online however I do not intend to hold till that day.