Bushveld Minerals Limited (LON:BMN) shares dropped on Friday as it reported what’s described as “an unprotected industrial action” at the company’s Vametco vanadium mine which has temporarily stopped production.
The suspension of operations began on the evening of September 5.
“The industrial action is in relation to historic legacy issues and compensation structures prior to Bushveld's acquisition of Vametco,” Bushveld said in a statement.
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“In keeping with the company's active employee and stakeholder engagement, the senior management team held a meeting with the union representatives, during which the company agreed with the union representatives that they would urge for all labour to resume work with immediate effect, on the basis of a commitment between both parties to negotiate and agree an employee share ownership plan during the course of next week.”
It added: “The company continues to engage with the union representatives and is hopeful of a speedy resolution and resumption of operations.”
Bushveld Minerals shares were down 2.8% changing hands at 21.88p.