BY AGENCY STAFF —

SHARES in South African gold mining companies dropped in early trade on Monday as investors braced themselves for the start of what could be tough wage negotiations later in the day while a faltering bullion price added to the bearish sentiment.

The talks, which include Africa’s top bullion producer AngloGold Ashanti, Sibanye Gold and Harmony Gold, come at a time when the industry is grappling with depressed prices, falling production and rising costs.

The firms say high pay increases would lead to the decline of a struggling industry.

However, the sector’s biggest union, the National Union of Mineworkers (NUM), wants around 80% pay increase for its lowest-paid members while the Association of Mineworkers and Construction Union seeking a more than two-fold increase.

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