28 July, 2011The global International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) family last week congratulated the victory by South Africa's National Union of Mineworkers (NUM) to block Brazilian mining group Vale's efforts to invest in the country, and to operate elsewhere in the region.
SOUTH AFRICA: Vale's anti-union behaviour throughout the world, most notably against the United Steelworkers (USW) in Canada, led NUM General Secretary Frans Baleni to describe the company as "one of the world's leading labour exploiters."
The base-metals mining company Metorex, listed on the Johannesburg Stock Exchange, had been a long-term acquisition target for Vale. The South Africa-based miner has extensive copper and cobalt mining operations, and prospective growth projects, in the Democratic Republic of Congo (DRC) and in Zambia.
The announcement that Vale were pulling out of the Metorex bid, due to strong pressure from the union, was welcome news on July 12. If the mining multinational had continued its pursuit, NUM was set to challenge the takeover in the South African Competition Commission.
The alternative bidder for Metorex, the Chinese company Jinchuan, also has a negative labour relations history and is not being welcomed by the NUM. The defeat of Vale will give a stark warning to Jinchuan of the NUM's strength. Baleni warned Jinchuan that "when in South Africa, do as South Africans do."
ICEM General Secretary Manfred Warda congratulated Baleni on the victory, describing it as "another example of the strength of Africa's predominant trade union."
Jinchuan has offered R 9.1 billion (€930 million) for Metorex, and the company's board has recommended that shareholders accept the offer.