Mining production crashes, the jobs bloodbath has only just begun

12 May 2016

According to StatsSA, mining production has plummeted by 18 per cent year-on-year, a much greater dive than what was expected. This is on the back of 10 000 job losses quarter-on-quarter reported earlier this month. Sadly it appears that these 10 000 are only the first of a bloodbath which is set to continue.

The mining industry faces many issues, including ballooning prices and regulatory uncertainty. The ANC government has shown no leadership on these issues and seems to be squabbling internally over the future of the industry: the MPRDA has been in legislative doldrums since 2014, a new Mining Charter has blindsided the industry, changing the goal posts once again, and now the Energy Minister has announced yet another change with a separate oil and gas bill. 

The 8.9 million unemployed are looking to government for urgent solutions. Government could start by canning the disastrous legislative proposals currently fumbling their way through Parliament and instead focus on making business easier, rather than harder to do, in the mining sector. 

Issued by James Lorimer, DA Shadow Minister of Mineral Resources, 12 May 2016