Eskom to destroy 90 000 mining jobs, warns Minerals Council SA

More than 90 000 mining employees will lose their jobs in the next three years due to the above-inflation electricity price hikes given to Eskom, according to the Minerals Council South Africa.

Eskom has 48 000 employees - 66% more than it needs, according to a World Bank study.

Labour unions are threatening to strike over job cuts at mines as well as at numerous state-owned companies.

The energy regulator has granted Eskom a tariff hike of 9.41% in 2019, 8.1% in 2020 and 5.2% in 2021.

The inflation rate (CPI) was 4.07% in February 2019, the latest available figure.

The Minerals Council South Africa says 71% of all gold mines and 65% of platinum mines were “loss-making or marginal".

Once the most significant contributor to South Africa’s gross domestic product by far, mining has shrunk over the last 10 years, hit by high wage settlements, uncertainty over ownership laws and dwindling deposits.

Statistics South Africa data shows that gold production fell for the 15th month in a row January.

It was down 22.5% while platinum production rose 8.8%.

The Money Show’s Bruce Whitfield interviewed Henk Langenhoven, Chief Economist at Minerals Council South Africa.

For more detail listen to the interview in the audio below.

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