Jobs bloodbath in mining sector could hurt the ANC in next year's elections

Bruce Whitfield interviews Antony Sguazzin, Senior Africa writer at Bloomberg News and Mamokgethi Molopyane, Mining and Labour Analyst.

According to people in the know, government is pleading with mining companies to hold off on job cuts until after the 2024 general elections.

Several mining companies are considering job cuts due to declining metal prices and a slowdown in iron ore exports.

We saw last year that coal shipments were at a 30-year low. Iron ore shipments were at a decade-long low. Things have probably got a little worse this year.

Antony Sguazzin, Senior Africa writer – Bloomberg News

It entrenches that continuation of unemployed. Not looking for work, not economically active, but also a complete stop in some of the economic activities around some of those areas where mining is taking place.

Mamokgethi Molopyane, Mining and Labour Analyst

Picture: © tomas1111 /123rf.com

South Africa’s platinum group metal sector is bleeding jobs, with Wesizwe Platinum just one of several mining companies considering job cuts. Wesizwe is considering slashing 75% of its workforce at its Bakubung mine in North West.

This year there’s already been a sharp decline in metal prices, but also operational issue brought about by loadshedding.

It’s going to have such a significant impact on the socio-economic being of people around those mines.

Mamokgethi Molopyane, Mining and Labour Analyst.

I also understand that Anglo American in the form of Kumba is also running out of space to store the iron ore that cannot get onto the railway to the port. Therefore it’ll have to cut back on production, which means they won’t want to employ as many miners.

Antony Sguazzin, Senior Africa writer – Bloomberg News

In the short-term there will be a lot of job losses. It’s a problem for a country that already has such a high unemployment rate.

Antony Sguazzin, Senior Africa writer – Bloomberg News

These issues have been further impacted the export business due to issues at Transnet, causing unnecessary delays at the country’s ports.

South Africa’s seventh democratic general elections is likely to take place sometime between May and August next year, and any job losses will be seen as a major blow to the ruling ANC-government chances at the polls

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