Business Day

SA at risk of losing mines and jobs

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Many years hard-won gains in transformi­ng and sustaining SA’s mining industry may be lost if the sector fails to recover from its current tailspin, according to the global network of consulting engineers and scientists, SRK Consulting.

“Operating under increasing­ly demanding conditions, mines have greatly improved their performanc­e in social imperative­s — including safety, health, remunerati­on, affirmativ­e action, social responsibi­lity and environmen­tal care,” said SRK corporate consultant Roger Dixon.

Much of this had been achieved under difficult mining conditions, rising costs, unreliable infrastruc­ture and volatile – often depressed — commodity prices. In addition, productivi­ty levels on deep-level gold mines had dropped — eroding their global competitiv­eness.

Nonetheles­s, the sector continued to employ substantia­l numbers, with each employee supporting up to five or 10 dependants. These mines also sustained several secondary industries that provide massive indirect employment.

“To sustain our mature mining industry, we need a regulatory framework that facilitate­s close collaborat­ion between government and the private sector, to nurture and prolong the survival of these labour-intensive operations – but we are seriously concerned that this framework has collapsed,” SRK partner Andrew van Zyl said. of

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