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South Africa mining faces 45 000 job losses on extended lockdown

Production could slump 15%.
Image: Shutterstock

South Africa’s mining industry could shed more than 10 000 direct jobs as the sector reels from the impact of the nationwide lockdown.

Job cuts could rise to more than 45 000, or about 10% of the total number of people employed in the sector, on a prolonged shutdown to curb the spread of the coronavirus, Minerals Council South Africa said in a report on its website.

Most South African mines have been mothballed since President Cyril Ramaphosa extended a 21-day lockdown by two weeks to the end of this month.

While the lobby group sees annual output contracting by about 5% as a result of the three-week closure, a prolonged lockdown could see production slumping 15%.

“A longer lockdown period, with lower production and no mechanisms in place to support the industry, could put 10% of the workforce at risk– and this excludes jobs in supplier industries,” the Minerals Council said.

© 2020 Bloomberg

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COMMENTS   7

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This is not good. Not good at all.

…remember “we are saving lives”, I hear CR saying (and some fellow commentators).

So for the destitute, it means the CHOICE OF DYING from hunger (100% chance) OR dying from a virus (6% chance)?

Michael, this is what I said from the beginning:

Don’t call this a war, and then kill the economy.

In a normal war, young men die.

In this war, it look like it is older people’s chance to die.

I said from day one, locking down is wrong.

…indeed, that was my concern: die “baba (ekonomie) gaan saam met badwater” uitgegooi word. Most Saffas in any case will get C19 during the next few months….lockdown or not.

One can understand the reason for lockdown is for healthsystem to cope by flattening the infection rate.
But I fear, give a year for global depression to properly set in, there will be more suicides than C19 deaths….

It is a WAR. (rightly said)

No 2 (shorter comments do not get m…….)

The irony is, we want to save hiv+tb people, but we do not care about unborn babies.

CRAZY!!!!!!!!!!!!!!!!!!

No 3

Italy did the right thing, (by mistake),
and they will be fine soon.

BTW, one good thing brought on by Corona,
the religious and atheist now comfort each other,
both scared of ‘natural selection’!

If we open the mines now i.e. 100% operating at full capacity, I think we will actually be able to increase employment by opening marginal shafts etc. With the Rand at almost R19/$ and Gold at around $1750, Palladium at $2200 surely these old marginal mines become hugely profitable, now is the time! Fantastic opportunity beckons! Miners are generally young and fit, forget Covid 19 they will be fine!

End of comments.

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