Mine strikes cost SA R10bn

2012-10-25 12:47

Johannesburg - Illegal strikes at South Africa's mines have cost the industry at least R10bn already this year, the Chamber of Mines top economist told AFP on Thursday, as workers and gold mine bosses inked a wage deal.

"This number can be doubled if the lost procurement, wages, capital expenditure, taxes and other contributions that are not happening due to the strikes are included in the calculation," Roger Baxter said.

  • kgolane.thulare - 2012-10-25 14:06

    Hey thats interesting, now tell us how much the mines made for SA already this year??? So we can do the maths and see if these wages demands can be met , in relation to the profits.

  • enock.metswamere - 2012-10-25 14:07

    rather lose R10billion for R12,500 ? shame man

  • Alan - 2012-10-25 14:26

    That's not even as much as the aNc has stolen through fraud and corruption!!!

      Alan - 2012-10-25 14:28

  • heathway.master - 2012-10-25 14:33

    Kgolane, have you ever heard of a scenario called business strategies and economic survival. If a Company has 10 Bil to invest in a company, and projected returns work out to 2% due to overheads, they will never take the business risk, but would rather safely put their money in a bank and get a secured say 5.5% a year return. You talk as though it is a crime for any company to make a profit as demanded by its shareholders. In case you do not know what a share holder is, he is someone who buys a company’s shares, thereby giving the company the necessary cash to operate and grow. For him also, if due to unsustainable labour costs, the company makes a loss every year, and does not pay out dividends, he will sell his shares for whatever he can get, and also deposit his cash in a bank. And by the way, company directors deserve the high salaries they get, as they represent profit share. No profit from the company, no performance bonus. Investor capital has already fled the country, and because of the strikes, jobs in and out of the mining industry will soon be shed in huge numbers. Possibly a fair proportion of the re-hired strikers will also get their just servings, by being amongst those that lose their jobs, and all financial support of their families.

  • melvine.accountec - 2012-10-25 22:45

    If Zuma can use R250 mil to expand his house then R10 bil in relation to the whole country's loss is nothing!

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