Lon­min

Finweek English Edition - - COVER STORY -

But who would really want it? Trader­sCorner.co.za founder Garth McKen­zie says the plat­inum sec­tor is fraught with com­plex­ity – all the big pro­duc­ers have is­sues with costs that are be­yond their con­trol, an in­creas­ingly mil­i­tant labour force and a grow­ing num­ber of risks.

“Their hand was forced into paying even big­ger salaries de­spite the fact that they were los­ing money. The chal­lenges in Lon­min are mas­sive and the op­por­tu­ni­ties some­what lim­ited,” says McKen­zie.

Not only that – but the South African busi­ness en­vi­ron­ment is strug­gling and seek­ing a scape­goat. The highly pub­li­cised high wage set­tle­ments agreed by Lon­min have had a knock-on ef­fect and have em­bold­ened work­ers in other sec­tors.

“They really stuffed it up for ev­ery­body,” says one CEO pri­vately. The wave of protest ac­tion that hit the min­ing sec­tor in the af­ter­math of the Lon­min wage

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