Strike paralyses SA’S mineral exports

The Minerals Council South Africa urges a speedy resolution to the strike affecting Transnet’s rail and port network, which is costing the country, businesses and the mining sector billions of rand in lost trade, taxes and economic activity, damaging an already fragile economy.

The council understands the challenges facing Transnet’s employees in terms of the rising cost of living. We urge the unions and Transnet to find a rapid resolution in the national interest.

The Minerals Council, whose members account for more than 80% of Transnet’s rail business and 50% of the group’s income, is concerned that the strike is damaging exports and imports, threatening not only mining companies but the country’s fragile economy at a time when 44% of people are jobless.

According to our estimates, bulk mineral exporters are losing R815-million worth of exports a day because they are unable to rail and load 357 000 tonnes of iron ore, coal, chrome, ferrochrome and manganese onto ships daily.

On average, South Africa exports about 476 000 tonnes of bulk minerals a day worth R1.06-billion. We estimate that just 120000 tonnes of minerals worth R261-million are being exported daily. Major mineral harbours are operating at between 12% and 30% of their daily averages.

The damage caused by the strike is not just the immediate impact but the longerterm consequences of having to catch up on delayed exports and imports, which will have a ripple effect on business and broader society.