The Minerals Council South Africa on Friday expressed its concern about the consequences of The Association of Mineworkers and Construction Union’s (AMCU’s) planned secondary strikes at mining companies where the union is recognised in the gold and platinum sectors.
Fifteen companies have, so far, received notices of secondary strike action from AMCU, including Lonmin, effective from the night shift of February 28 to around March 7, said the council.
AMCU earlier this week announced its plans to embark on a secondary strike at not only Sibanye-Stillwater’s platinumoperations, but at all operations where it is the majority union.
The secondary strike action has been declared at a time when the gold and platinum sectors are facing numerous challenges, including poor commodity prices, continually rising input costs and operational challenges with the depth of operations continuing to increase, while grades continue to decline, the Minerals Council stated.
In 2018, on an all-in cost basis at prevailing prices, 71% of gold mining operations were either marginal or lossmaking, while more than 50% of platinum group metals production was unsustainable, it pointed out.
“Strike action will only serve to further undermine the sustainability of an industry on which so many lives depend,” stated the council.
It added that the strike would be to the detriment of the mining industry and the people directly employed by it, as well as affecting the entire economy and the country as a whole for many years to come.
Since 2007, jobs in the gold sector have declined by nearly 40% and, since 2017, employment in the gold sector has declined by 10%.
“The mining industry has the potential to be a key driver of the economy and change. It is unfathomable that AMCU would willingly call for secondary strikes in an industry that is already in jeopardy,” said Minerals Council CEO RogerBaxter.
Mining Weekly