Forbes Coal to resume production at South Africa mines

Fri Nov 16, 2012 12:06pm EST
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* Says resolved wage-related dispute with workers

* Cuts fiscal 2013 production forecast by 24 percent

* Lowers third-quarter sales outlook by 63 percent

* Warns of lower sales in fourth quarter

Nov 16 (Reuters) - Forbes & Manhattan Coal Corp said it resolved a labor dispute at its South African mines but cut its full-year output forecast after it lost about two weeks of production.

The company, which also warned of a 63 percent fall in sales in the current quarter, said operations at its two mines will resume on Nov. 19 after it agreed to an average wage increase of 14.8 percent.

Forbes Coal, like other miners in South Africa, has been facing wage-related labor disputes. While Anglo American Platinum revised its production forecast, Kumba Iron Ore warned of a 20 percent fall in profit due to the labor unrest.