Minerals Council South Africa (MCSA), which represents AngloGold Ashanti, Harmony, Sibanye-Stillwater and Village Main Reef in the talks, said all four unions, the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity and UASA, had rejected the August 2 offers.

The updated offers had ranged from 6-7.2% for category four underground employees, up from the previous 5.5-6.5%, and 3.5-4.5% for mineral, artisans and officials, an increase from 3-4.5%, which MCSA said were "responsible and sound offers."

The NUM said the gold producers had been "dragging feet deliberately," adding its demands were R9,450 (US$650.68) for surface workers, R10,450 for underground workers and 14.5% for miners, artisans and officials.

AMCU is demanding a R1,800 increase for category four to eight employees and a 10% increase for miners, artisans and officials.

Solidarity said it had responded to the MCSA offer by changing its demands to an increase of the consumer price index plus 4% and dropped its initial demand of 10%.

General secretary Gideon du Plessis said, while the union fully supported and welcomed the offer to lower category four to eight workers, it wanted employers to start recognising the value of their skilled employees in higher categories as well, including miners, artisans and officials.

"The Minerals Council's latest offer is not only lower than the inflation rate, but it is also significantly lower than the latest offers being made to lower category employees," he said.

He said it created the impression that their value and role were being overlooked.

"It is being experienced as a snub, and skilled employees moreover believe that the smaller increase being offered to them is a way of subsidising the other salary increases", Du Plessis said.

"There is also a misconception among employers that employees in the skilled category will not go on strike - hence the offer that is lower compared to the one made to the other categories. It is now becoming a matter of principle for which skilled workers are prepared to exercise all rights to get a fair increase." 

MCSA chief negotiator Motsamai Motlhamme said South Africa's gold industry was facing many challenges, including a stagnant gold price, rising costs and falling profitability.

"These challenges have had a significant impact not only on sustainability of the gold sector, but on the mining industry as a whole. Our industry's future, and its ability to continue to provide employment and benefits to employees, depends on the ability of all its stakeholders to act responsibly to ensure that it remains viable," he said.

The negotiations were scheduled to continue is a week's time.