Pravin Gordhan, South Africa’s Public Enterprises Minister/Bloomberg
While mining has long been a major contributor to the South African economy, uncertainty over government policy, strikes as well as rising costs have all contributed to an investment downturn that is hurt the country’s overall growth.
Wednesday 22, May 2019
(Bloomberg) --South Africa’s Public Enterprises Minister said that mining companies must reverse recent decisions to cut jobs in the industry to help revive the economy and boost investor confidence.
The Public Enterprises Minister’s comments come a day after Lonmin said it plans to cut 4,100 workers at platinum mines that are being closed down, while in February Sibanye Gold said restructuring of its unprofitable gold-mining operations in South Africa could lead to more than 6,000 job losses.
Pravin Gordhan, South Africa’s Public Enterprises Minister, said, “Companies must ensure there is a balance in what they do in respect of shareholder expectations and societal expectations.”
Companies must do a deal with the government on a new mining charter that determines industry ownership rules, Gordhan said.