Some recovery in mining predicted, but job cuts still on the cards - analyst

In June last year government warned that 32 000 mine works could lose their jobs. The National Union of Mineworkers (NUM) came back with their own figures arguing that more than 57 000 workers in the industry faced a risk of potential cuts.

Are things still looking so gloomy?

Mamokgethi Molopyane, Mining and Labour analyst at Voodoo Consulting looks at the state of the mining industry and prospects for the future.

She says we did face one of the worst crisis in mining with commodity prices being so low. But she predicts things may pick up this year. There are still going to be sectors withing the industry that will shed jobs because they are under pressure, she says.

One of these sectors is the platinum metals group.

It affects us because we are one of the world's largest producers of platinum.

Mamokgethi Molopyane, Mining and Labour analyst at Voodoo Consulting

Even though we are no longer in a crisis and there is potential for a recovery in 2017, we cannot say jobs are not going to be shed.

Mamokgethi Molopyane, Mining and Labour analyst at Voodoo Consulting

She says it seems difficult for mining companies to rather save costs in other areas than labour. South African companies pay higher costs for electricity and goods transport than in other countries.

It is unfortunate that the workers - the producers of commodities - are always the first to be let go.

Mamokgethi Molopyane, Mining and Labour analyst at Voodoo Consulting

Take a listen to Mamokgethi Molopyane's insights into the mining industry and the challenges it faces this year:


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