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Net closes in on Zwane as mining job losses mount

Johannesburg - It appears as if embattled Minister of Mineral Resources Mosebenzi Zwane has lost the last bit of support from any quarter in the mining sector as potential new job losses reach a tally of 21 000.

This week, the National Union of Mineworkers (NUM) set the cat among the pigeons by openly calling for Zwane to resign or be fired.

During a press conference at its head office in Johannesburg, the union said Zwane was the worst mining minister since 1994.

The first mining minister in South Africa’s post-apartheid government in 1994 was Pik Botha.

The Chamber of Mines has a fractured relationship with Zwane.

It currently has two court battles pending against the minister, including one to halt the implementation of the latest mining charter, which is fuelling already strained relations across the sector.

NUM president Piet Matosa did not spare Zwane any of the union’s frustrations when he said its highest decision-making body between conferences, the NUM’s national executive committee, would resolve to request the ANC to recall Zwane as none of the major stakeholders in the mining industry was happy with him.

“We see him meeting with the Chamber of Mines and investors and all that, but he is a very scarce commodity to the NUM,” Matosa said, implying that Zwane was serving the interests of outsiders over those of industry players.

Matosa even went so far as to say that the NUM was willing to join forces with other stakeholders to have Zwane removed.

The union added that Zwane’s recent move to consider placing a moratorium on section 11, which governs the transfer of mining rights, was disturbing and could not have come at a worse time for the industry, given mounting job losses totalling more than 21 000.

This figure is in addition to the estimated 70 000 job loss tally in the mining industry since 2012.

In more gloomy news this week, Sibanye Gold announced that it could cut 7 400 jobs at its Beatrix West and Cooke operations.

The NUM said this 7 400 figure excluded the almost 3 000 contractors who also faced redundancy.

This comes hot on the heels of two announcements last month, when AngloGold Ashanti said it was looking to cut 8 500 jobs at two of its local mines, and Bokoni platinum mine in Limpopo announced that it would retrench up to 2 651 employees.

A Chamber of Mines spokesperson said that although the organisation would not be campaigning for Zwane to be shown the door, its members were displeased with the quality of their interactions with him.

“The chamber is not campaigning for the minister to step down. However, as you are aware, we have very serious objections to a number of things he has done,” said the spokesperson.

“The levels and quality of consultation are less satisfactory than the industry had with ministers Ngoako Ramatlhodi, Susan Shabangu and Phumzile Mlambo-Ngcuka,” the representative said, when asked to compare the chamber’s relationship with Zwane with what it had experienced with his predecessors.

On Friday, the chamber and the department of mineral resources reached an agreement at the High Court in Pretoria, after Zwane formally stated that he did not intend to suspend the processing of section 11 applications, new mining and prospecting rights applications, and renewals of existing rights.

On Thursday night, Zwane indicated in a series of tweets on his department’s Twitter page that the moratorium wouldn’t go ahead.

On Friday, Zwane received a roasting from the judge for ignoring legal process, Fin24 reported.

This was because he failed to submit an answering affidavit to the chamber’s urgent application to set aside his moratorium.

An irate Judge Ramarumo Monama called the minister’s actions irresponsible and asked him if he thought he was Donald Trump, who tweets big decisions.

READ: Judge tears into Zwane, asks if mines minister thinks he's Trump

“I’m horrified that the court procedures can just be disregarded in such a way,” he said.

ANC spokesperson Zizi Kodwa was noncommittal about Zwane’s future, merely saying: “We do not appoint ministers.”

Economist Neva Makgetla said mining was a difficult sector.

“You need to know how to negotiate right, and in a democracy all other stakeholders have powers too,” she said.

“Mining needs long-term investment and that will not happen if you keep threatening people’s investment.”

Joseph Mathunjwa, the leader of the Association of Mineworkers and Construction Union (Amcu) – the only other major union in the sector – said he was convinced that Zwane is not the right man for the job as he seemed to be pursuing a specific agenda.

“He is highly incompetent,” said Mathunjwa.

“Maybe it has to do with the mandate which he was given.”

Mathunjwa added that Amcu had criticised Zwane when he was first appointed, but the NUM had defended him.

“He is a nonstarter and everyone knows that,” Mathunjwa said.

James Lorimer, the DA’s shadow minister for mineral resources, said Zwane had shown that he was out of his depth in the portfolio.

“He has demonstrated convincingly and repeatedly that he has no proper understanding of mining and its importance to the livelihoods of so many South Africans.

“Under him, confidence has collapsed, investment has stopped and jobs have been lost,” said Lorimer.

“He is a disgrace and should be fired.”

Ayanda Shezi, department of mineral resources spokesperson, said: “As a principle, the minister does not prefer to engage in public spats with key stakeholders.”

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