• Dangerous games

    Employers' body Neasa is playing a potentially dangerous game, says Terry Bell.

  • Rational thinking

    All players should first consider the net result of their actions, says Leopold Scholtz.

  • Telkom's property poser

    BEE may be hindering Telkom's plans to offload redundant real estate, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Malema's mining solution 'destructive'

Aug 31 2012 14:36 Sapa

Company Data

Lonmin plc [JSE:LON]

Last traded 41.60
Change -0.91
% Change -0.02
Cumulative volume 741672
Market cap 23.65bn

Last Updated: 31/07/2014 at 04:27. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Mining revolt spreads to Gold Fields

Platinum funds rise after Marikana deaths

Lonmin talks put on ice

Shabangu: Let courts decide

Lonmin: No work, no pay

Malema threatens mines

 

Johannesburg - Threats by expelled ANC Youth League president Julius Malema to make mines ungovernable will result in job losses, the Democratic Alliance said on Friday.

"The fact that this may happen quietly and over time, in the form of new investments that are not made, does not make it any less certain," spokesperson James Lorimer said in a statement.

"Diminished investment will mean less inflow of new money that mining constantly requires to maintain itself and to grow. That means some jobs will end when mines close and will not be replaced."

Lorimer said there were currently 500 000 people employed in the country's mining industry.

On Thursday, Malema promised to make all mines in the country ungovernable.

"We are going to lead a mining revolution in this country... We will run these mines ungovernable until the boers come to the table," he told workers at the Aurora mine in Grootvlei, Springs.

"We want them to give you a minimum wage of R12 500. These people can afford R12 500. Mining in South Africa amounts to trillions of rands."

Some South African mines were doing relatively well at the moment, Lorimer said.

"But they need to do better than average in order to offset the perceived risk of increased government pressure, either from nationalisation or new resource rent taxes."

Lorimer said the recent violence at Lonmin [JSE:LON] platinum mine in Marikana, North West, increased the risk.

"While Malema's criticism of a leadership vacuum is accurate, his prescription to make mines ungovernable is self-serving and destructive," he said.

Workers at the world's third-largest platinum producer went on strike earlier this month, demanding a monthly salary of R12 500. They had vowed not to return to work until their demand was met.

The strike turned violent and 10 people, including two policemen and two security guards, were killed between August 10 and 12. On August 16, 34 miners were killed in a confrontation with the police.


* Follow Fin24 on Facebook, Twitter and Google+.

 
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No need to keep up with the Joneses

Fin24 users provide their own personal tips on how to save money instead of trying to keep up with the Joneses.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...