South Africa's National Union of Mineworkers signed an agreement with the Chamber of Mine

s late Wednesday for a three-year wage increase for coal mine workers. 

The  NUM  represents  coal  workers  at  Anglo  American  Coal,  Exxaro  Coal Mpumalanga, 

Glencore Operations, Msobo Coal, Koornfontein Mines, Delmas Coal and Kangra Coal. 

The signing will alleviate concerns the NUM would announce a nationwide strike at all mines 

involved in the negotiations. 

However, workers at Kangra Coal rejected the wage offer, and will now strike from 11:00 am 

Friday. According to an NUM spokesman, Kangra was unable to match the offer presented b

y other coal miners. 

The agreement amounts to 2018 wage increases of 6-7.5% or consumer inflation plus 0.5-

1%, whichever is higher, and 7-8.5% or consumer inflation plus 1%, whichever is higher for 

2019. 

The  strike  at  Kangra  will  last  indefinitely  until  a  wage  agreement is reached, the NUM 

spokesman  told  S&P  Global  Platts.  The  mine  produces 3 million mt/year of coal with an 

estimated 2 million mt exported via Richards Bay Coal Terminal. 

Market b reaction  Thursday  was  muted, with just three screen trades for South Africa coal 

through web platform ICE and none via the CME exchange Thursday morning. 

Market sources were not expecting much price movement to result from the strike at Kangra, 

saying  current  coal  stockpiles  at  Richards Bay are estimated to be more than 5 million mt 

which would easy any supply concern. 

S&P Global Platts assessed FOB Richards Bay 5,500 kcal/kg NAR coal at $73.80/mt on November 23.