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Gordhan says mining firms must reverse job cuts

To revive economy and boost investor confidence.

South Africa’s mining companies must reverse recent decisions to cut jobs in the industry to help revive the economy and boost investor confidence, according to public enterprises Minister Pravin Gordhan.

His comments come a day after Lonmin said it plans to cut 4 100 workers at platinum mines that are being closed down, while in February Sibanye Gold said restructuring of its unprofitable gold-mining operations in South Africa could lead to more than 6 000 job losses.

Read:

Sibanye-Stillwater could cut almost 6 000 jobs in gold restructuring

Lonmin plans to cut 4 100 workers as it closes platinum mines

“Companies must ensure there is a balance in what they do in respect of shareholder expectations and societal expectations,” Gordhan said at a dinner hosted by South Africa’s minerals council in Johannesburg on Tuesday.

While mining has long been a linchpin of the South African economy, uncertainty over government policy, strikes and rising costs have all contributed to an investment downturn that’s hurt the country’s overall growth. Companies must do a deal with the government on a new mining charter that determines industry ownership rules, Gordhan said.

© 2019 Bloomberg L.P

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“Reverse job cuts ” ?

Only a Commie Govt will do that.

The stupidity beggars belief !

What on earth does this mean; “Companies must do a deal with the government on a new mining charter that determines industry ownership rules.”

Is he offering to pay all the wages from Treasury funds if the mines keep the people working?

Im not sure this is balanced reporting as it gives me the strong impression that he is clueless… You the government create the business and economic environment in which decisions get made, you have created the uncertainty, you have caused business to increase risk premiums and therefore have higher hurdle rates, which means more selective investment… Get your own house in order before trying to dictate what others should be doing.

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