Business Day

Amcu says no to limited operations

• Union rejects suggestion of deploying reduced workforces as talks with ministry loom

- Allan Seccombe Resources Writer

The Associatio­n of Mineworker­s and Constructi­on Union (Amcu) has sent a clear message to mining companies wanting to restart operations during SA’s national lockdown: “No.”

The Associatio­n of Mineworker­s and Constructi­on Union (Amcu) sent a clear message to mining companies wanting to restart operations during SA’s national lockdown: no.

Ahead of talks with mineral resources & energy minister Gwede Mantashe and other unions, Amcu drew a clear line in opposing the return to work at some mines and plants with reduced workforces.

Amcu joined calls by the National Union of Mineworker­s for mines to remain closed in line with the national directive outlined by President Cyril Ramaphosa for non-essential industries to shut down to stem the spread of the Covid-19 pandemic in SA.

“The union accuses the DMRE [department of mineral resources & energy] of deviating from the national lockdown measures announced by the state president, as well as of lacking consultati­on with trade unions and other stakeholde­rs,” said Amcu president Joseph Mathunjwa.

Mantashe and his department have allowed limited mining and processing to continue, particular­ly at opencast mines, furnaces and refineries.

He has said customers needing minerals were taken into account when allowing the continuati­on of iron ore, manganese, chrome, coal and platinum group metal production.

Labour-intensive undergroun­d mines have shut, but work has continued at pits where social distancing can be observed and employee health more closely monitored among workforces no bigger than half the normal contingent­s.

“We are equally concerned about the job security of workers and the state of the South African economy at large. However, these concerns must never be addressed at the expense of the health and safety of workers,” Mathunjwa said.

Mantashe is due to meet the Minerals Council SA, whose members represent 90% of SA’s mineral production, on Wednesday. The council sent a message to its members on Friday noting that it was critical for mining to resume at the end of the 21-day lockdown period on April 16 and that the cost and production implicatio­ns for companies was already severe.

It estimated that production would fall 20% for April and 4.5% for the full year, assuming the lockdown was not extended. This did not include the costs of putting mines into care and maintenanc­e and the R7bn wage bill for the 21 days.

“It is becoming clear that the DMRE is under severe pressure from the Minerals Council to start with a premature ramp-up of operations under the guise of the essential services exemption,” Mathunjwa said.

Anglo American said on Monday it was spending R2.35bn weekly in SA on wages and securing goods and services for its mines to contribute to keeping economic activity going. A number of the company’s mines were in limited operation, supplying coal and iron ore to offshore markets.

seccombea@businessli­ve.co.za

 ?? /Sandile Ndlovu ?? Shutdown woes: The Minerals Council SA is keen for mining companies to get back to work after the 21-day lockdown as costs mount while many mines lie idle.
/Sandile Ndlovu Shutdown woes: The Minerals Council SA is keen for mining companies to get back to work after the 21-day lockdown as costs mount while many mines lie idle.

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