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Roundup: S. African gov't warns of suspending mining operations over job cuts

Xinhua, August 5, 2015 Adjust font size:

The South African government warns of suspending mining companies' operations over recent wave of job cuts in the sector.

The Minister of Mineral Resources Ngoako Ramatlhodi ordered Tuesday coal producer Glencore to suspend all operations at its Optimum Colliery coal mine because of the way it planned to carry out retrenchments.

Glencore announced last month it would cut 380 jobs at Optimum and shut part of the mine due to lower coal prices.

Ramatlhodi has also warned that other mining companies would meet the same fate if they cut jobs.

This was obviously a reaction to the mounting wave of job cuts announced by several mining companies in the last few weeks.

The government's move has caused alarm from the industry and the opposition alike.

The move, in materialized, "is going to make things worse for our mine workers," the opposition Democratic Alliance (DA) said on Wednesday.

The job losses are caused by plummeting world prices for South African minerals combined with a thicket of unclear, poorly conceived, and corruptly implemented mining regulations, said James Lorimer,a DA senior member.

But the ruling African National Congress (ANC) must realize that if it tries to strongarm business, there will soon be no business left to strongarm, Lorimer said.

In face of the crisis, Ramatlhodi has called for an urgent meeting with the mining industry and organized labor to address the issue of job losses.

"This will be a far more fruitful route for the minister to follow, but will only be so if he actually listens to the industry when they tell him of the realities of the mining business," Lorimer said.

Also on Wednesday, Minister of Economic Development Ebrahim Patel said South Africa's mining sector is in "trouble" as it struggles with widespread job losses and lower commodity prices.

"The mining industry is in trouble," Patel said on Talk Radio 702.

The government would boost the agriculture, tourism and manufacturing sectors to diversify Africa's most developed economy from a reliance on mining, Patel said.

The private sector could more do to create jobs, he added. Endit