Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
South Africa’s Gold One (ASX:GD) followed Amplats example and on Tuesday fired 1,435 of its 1,900 Ezulwini employees in South Africa, after a week-long illegal strike.
The miner said in a statement the turmoil at its Ezulwini mine, just outside Johannesburg, began on Oct. 1 when “a large number of employees at Ezulwini failed to report for work.”
Striking workers had been asked to appear today at disciplinary hearings.
The company said the sacked workers have until Thursday to appeal their dismissal.
Gold One also said the South African Police Service was maintaining a strong presence at the operation to ensure that there were no acts of intimidation or violence. “Currently only essential services are continuing at the mine,” the company added.
Last week, Anglo American Platinum dismissed 12,000 workers taking part in a three-week illegal strike after following through on tough talk over wildcat stoppages in South African mines.
Since August, about 100,000 workers across South Africa, 75,000 belong to the mining sector, have downed tools in often illegal and sometimes violent strikes that are threatening South Africa’s growth this year while undermine investor confidence in the sector.
South Africa’s mining industry accounts for 6% of gross domestic product and the country’s platinum production equals 75% of the world’s total.
Image is a file video capture of striking workers at Lonmin’s Marikana in SA.
3 Comments
Phemba
Get rid of them, fire them, please fire them, there are many other people that would take their jobs and eventually they’ll come running back with their tail’s tugged between their legs. They are trying to show us that they can throw South Africa off the rails, well we just have to fight back and show them who is in control, or els South Africa would turn into a big mess..
Mike Turner
The biter bit !! More firings to come, I believe.
Pete
I hope so!