Urgent meeting convened to save jobs in S. African mining sector

South Africa's Minister of Mineral Resources Ngoako Ramatlhodi on Wednesday convened an urgent meeting in Pretoria with stakeholders in the mining industry to find solutions to massive job cuts in the sector.

The meeting came after a number of mining companies announced their plans to cut thousands of jobs due to the decline in commodity prices and lower demand for minerals worldwide.

Experts warn that up to 30,000 jobs could be lost in the country's mining sector within the next two years.

Addressing the media at the start of the two-day meeting, Ramatlhodi said he was positive that a solution would be found.

"We are going to look at what is it that government must do, what labour must do and what the industry must do to save jobs.

"None of us should leave this place without putting a commitment on the table," said Ramatlhodi.

Ramatlhodi has already suspended the mining licence of coal producer Glencore's Optimum Colliery mine after the company started shedding jobs on the grounds that the mine was no longer profitable.

Optimum's decision to halt production earlier this year had already led to the losses of 1,000 jobs.

Ramatlhodi said the suspension of the licence would be lifted as soon as the company provides a plan showing how it would avoid the retrenchments.

"We are looking at alternatives to retrenchments. We are saying because Glencore has other operations elsewhere, they should look at possibly shifting retrenched workers to other areas. We are saying we must look at voluntary retrenchments particularly with regards to the older people who are due for retirement.

Other mining companies have also announced their intentions to cut jobs. Anglo American has already announced that it would reduce its global workforce by over 50,000 workers by 2017. Lonmin Platinum plans to cut up to 6,000 jobs.

The suspension of the Optimum mine licence came as a strong warning to these companies planning massive job cuts. However, Mike Teke, President of Chamber of Mines of South Africa urged the stakeholders meeting in Pretoria to come up with urgent solutions at a time when the mining industry was under severe pressure.

Teke said, "Commodity prices across the board have taken a slump whether it is the gold price, platinum price or coal price. It is difficult for the mining industry in general and that impact has to be considered by all the parties.

"We do not go out and shed jobs because we feel like shedding jobs but this is a difficult time for the companies and we would like to see this meeting coming up with something constructive,"Teke added. Endit