Coal mines producers in early April ahead of wage negotiations the following month, with workers likely to seek gains above the rate of inflation.

“We will submit our mandate early next month,” Lesiba Seshoka, a spokesman for the National Union of Mineworkers, said by mobile phone today. “From what I can see so far, they’re looking at something bigger than inflation.”

South Africa is the world’s third-largest gold producer and the biggest source of coal for European power plants. Inflation in the country rose to 8.6 percent in February, the first increase in six months, after gasoline prices climbed. NUM, with about 320,000 members last year, is the largest union in Africa and among the five biggest in the world, according to Seshoka.

South Africa’s Chamber of Mines negotiates pay increases with unions on behalf of producers including AngloGold Ashanti Ltd., Gold Fields Ltd. and Harmony Gold Mining Co. The chamber also negotiates with other unions including Solidarity and the United Association of South Africa.

Negotiations are going to be “tough,” AngloGold Chief Executive Officer Mark Cutifani said in a March 20 interview.

“Gold is doing very well in terms of the price,” Seshoka said. “Coal was also doing very well.”

The rand price of gold has risen about 15 percent in the past year to about 8,759 rand ($920) an ounce. State-run power utility Eskom Holdings Ltd. is looking to secure coal supply as it builds new plants and as current fuel sources are depleted.

NUM will negotiate with individual platinum producers such as Anglo Platinum Ltd. and Impala Platinum Holdings Ltd., Seshoka said.

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