South Africa taskforce seeks to soften crisis impact
- Publishing Date
- 02 Dec 2008 11:39am GMT
- Author
- Mining Journal
South Africa has formed a task team to look for ways to stem job cuts sparked by the global financial crisis that has sent metal prices sharply lower and put 10,000 jobs at risk
A meeting was held on Monday between South Africa's Department of Minerals and Energy, the Chamber of Mines, which represents big mining companies, and mineworkers' unions to try to lighten the impact of the crisis on the mining sector.
“Our aspiration was to have a moratorium adopted at the meeting to prevent job losses, but mining companies said they were losing money already and things could get worse if they don't cut their costs now," said Frans Baleni, general secretary the National Union of Mineworkers, the country's largest mineworker union.
Mr Baleni said the team would look at ways to try to stave off the worst of the impact of the credit crisis on mines, and help the industry prepare for when commodities rise again. The team would meet again in less than a month.
Unions fear South Africa's mining industry, a key contributor to the country's economy and a major employer, will shed more jobs than it has already.
Some mining firms have so far only scaled back output and put the brakes on new mine expansions. Baleni said the gold sector had not been hurt as much as platinum producers.
The world's number three platinum producer Lonmin plc, plans to cut 5,500 workers at its South African mines, citing weak demand for platinum from car manufacturers, the biggest users of the metal. The metal has fallen more than 40% this year.
Canada's Uranium One Inc plans to lay off 1,013 workers at its shut Dominion uranium mine, and London-listed Petra Diamonds Ltd wants to lay off 350 workers at its Helam mine in South Africa.
DRDGOLD Ltd plans to cut 1,700 jobs from its shut ERPM mine because it cannot raise the required cash to pay for a new water pump, while small gold miner Simmers & Jack Mines Ltd may shed 500 workers at its Buffelsfontein Gold Mine if it fails to meet output targets.
The job cuts are a big setback in South Africa as it seeks to tackle its 23% unemployment rate.
(Reuters, December 2)
A meeting was held on Monday between South Africa's Department of Minerals and Energy, the Chamber of Mines, which represents big mining companies, and mineworkers' unions to try to lighten the impact of the crisis on the mining sector.
“Our aspiration was to have a moratorium adopted at the meeting to prevent job losses, but mining companies said they were losing money already and things could get worse if they don't cut their costs now," said Frans Baleni, general secretary the National Union of Mineworkers, the country's largest mineworker union.
Mr Baleni said the team would look at ways to try to stave off the worst of the impact of the credit crisis on mines, and help the industry prepare for when commodities rise again. The team would meet again in less than a month.
Unions fear South Africa's mining industry, a key contributor to the country's economy and a major employer, will shed more jobs than it has already.
Some mining firms have so far only scaled back output and put the brakes on new mine expansions. Baleni said the gold sector had not been hurt as much as platinum producers.
The world's number three platinum producer Lonmin plc, plans to cut 5,500 workers at its South African mines, citing weak demand for platinum from car manufacturers, the biggest users of the metal. The metal has fallen more than 40% this year.
Canada's Uranium One Inc plans to lay off 1,013 workers at its shut Dominion uranium mine, and London-listed Petra Diamonds Ltd wants to lay off 350 workers at its Helam mine in South Africa.
DRDGOLD Ltd plans to cut 1,700 jobs from its shut ERPM mine because it cannot raise the required cash to pay for a new water pump, while small gold miner Simmers & Jack Mines Ltd may shed 500 workers at its Buffelsfontein Gold Mine if it fails to meet output targets.
The job cuts are a big setback in South Africa as it seeks to tackle its 23% unemployment rate.
(Reuters, December 2)
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