Royal Dutch Shell Says Strike-Torn South Africa Out Of Control
October 6, 2012 2:12 AM EST
Royal Dutch Shell Plc (London: RDSA), the world's fourth-largest energy company by market capitalization, said Friday it would be unable to fulfill all delivery commitments in South Africa as the country grapples with the strikes of 20,000 truck drivers and 75,000 metal miners.
The Hague, Netherlands-based Shell declared a "force majeure" that allows it to break contracts due to uncontrollable circumstances. "There is fuel available across the country, so the issue is not fuel supply, but the challenge is delivering it safely to our retail sites," the company said in a statement to Reuters.
Violence continued throughout the country as police shot one worker dead near a platinum mine in Rustenburg owned by Anglo American Plc (London: AAL). Workers told Reuters that the person was shot by a rubber bullet, but police would not confirm the cause of death. A total of 48 workers and police have been killed since strikes began, including 34 deaths at the Marikana mine owned by Lonmin Plc (London: LMI).
Companies including AngloGold Ashanti Ltd. (NYSE: AU), the country's biggest gold producer, Gold Fields Ltd. (NYSE: GFI) and Harmony Gold Mining Co. (NYSE: HMY) have also been affected by strikes, which have encompassed around 15 percent of the country's miners.
South Africa's finance minister, Pravi Gordham, plans to cut the country's 2012 GDP growth forecast down from 2.7 percent when he presents an interim budget on Oct. 24.
The South African rand fell 1.68 percent to 11.5 cents in Friday morning trading. Shares of Shell rose 0.49 percent to $71.92 in morning trading.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date