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Cape Town - In response to a call for debate on the platinum miners strike by labour columnist Terry Bell in his weekly Labour Wrap, Fin24 user David Dunwoodie writes:
I would like to ask Terry if the mines can afford the R12 500 basic. Is this a realistic figure? And going forward with mechanisation - the growing trend worldwide - surely mining companies in SA will start to follow suit? I can foresee a lot of jobs losses.
Terry Bell responds:
Hi David
An immediate increase to that level might not bankrupt the three major producers, but would certainly create major problems, especially for Lonmin. However, the union, several weeks ago, tabled proposal for a phased in series of increases over four years (there was also a hint that this might be extended to five years). This would, I think, definitely make the R12 500 entry level basic wage affordable.
But one factor that seldom - if ever - seems to be taken into account is that while platinum (unlike gold) is a metal in demand for industrial use, its use is as a catalyst and it is, therefore, almost endlessly reusable.
Recycled platinum now accounts for more than 2 million ounces a year and there is a declining demand from the auto sector as vehicle sales, internationally, start to fall.
Unless hydrogen cell technology comes fully on stream, platinum producers could find themselves struggling in the not too distant future.
Mechanisation is a factor and, in this regard, Amplats is better placed than Implats and Lonmin. Amplats already has three open cast mines operating in a 137sq km prospect. Such mining is highly mechanised and has many fewer, but more highly qualified - and paid - employees.
The underground mines, however, given the nature of the mineral reef and the way the shafts were designed (for manual labour) large scale mechanisation is probably not on the cards.
Regards
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
I would like to ask Terry if the mines can afford the R12 500 basic. Is this a realistic figure? And going forward with mechanisation - the growing trend worldwide - surely mining companies in SA will start to follow suit? I can foresee a lot of jobs losses.
Terry Bell responds:
Hi David
An immediate increase to that level might not bankrupt the three major producers, but would certainly create major problems, especially for Lonmin. However, the union, several weeks ago, tabled proposal for a phased in series of increases over four years (there was also a hint that this might be extended to five years). This would, I think, definitely make the R12 500 entry level basic wage affordable.
But one factor that seldom - if ever - seems to be taken into account is that while platinum (unlike gold) is a metal in demand for industrial use, its use is as a catalyst and it is, therefore, almost endlessly reusable.
Recycled platinum now accounts for more than 2 million ounces a year and there is a declining demand from the auto sector as vehicle sales, internationally, start to fall.
Unless hydrogen cell technology comes fully on stream, platinum producers could find themselves struggling in the not too distant future.
Mechanisation is a factor and, in this regard, Amplats is better placed than Implats and Lonmin. Amplats already has three open cast mines operating in a 137sq km prospect. Such mining is highly mechanised and has many fewer, but more highly qualified - and paid - employees.
The underground mines, however, given the nature of the mineral reef and the way the shafts were designed (for manual labour) large scale mechanisation is probably not on the cards.
Regards
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
