Mozambique: Illegal mining of major concern to the sector
A Bola
The Chamber of Mines of South Africa says that companies are eliminating thousands of jobs in the sector, identified as the largest employer of Mozambican workers in the country.
Although nearly 80 percent of the companies are making a profit, the South African Chamber of Mines of South Africa estimates that in the coming months, 32,000 Mozambican jobs will be cut.
According to the Chamber of Mines, since 2012 the sector has lost 47,000 jobs, a situation that affects thousands of families whose livelihood depends on mining, Mozambicans included.
Anglo American, once one of the largest companies in South Africa, is expected next week to announce a restructuring plan which some believe will involve selling its coal mines.
In 2015, Anglo American executive director Mark Cutifani announced plans to cut two thirds of the workforce and sell off all loss-making mines.
Mining expert Peter Major characterized the situation as “disastrous” for the economy. “The gold-mining sector has fired 450,000 workers since 1980,” he said.
Head of the South African mining company Deloitte Africa, Tony Zoghby explained: “Part of the legislation on mining is ambiguous. We had been waiting for a new law since 2010.”
Tensions in the labour sector and poor productivity are other problems affecting the industry, in addition to the quality of the ore, which has fallen dramatically. The executive director of the Chamber of Mines, Roger Baxter, says that in the last decade, productivity in terms of kilograms per worker fell between 25 and 30 percent in both the gold and platinum sectors.
In addition, per-kilogram production costs increased by 150 to 250 percent in these sectors.
The industry however remains the main employer in South Africa and at the end of 2014 employed 495,000.
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