HomeNewsChamber of Mines: Capital/sustaining capital cuts detrimental to mining future

Chamber of Mines: Capital/sustaining capital cuts detrimental to mining future

Mike Teke, SA Chamber of Mines president
Mike Teke, SA Chamber of Mines president

Chamber of Mines President Mike Teke believes that companies which reduce cost pressures by cutting back on capital and sustaining costs and restructuring is to the detriment of growth and sustaining mining employment in the medium and long term.

Teke was speaking at the recent quarterly Mining Sector National Consultative Forum meeting which was attended by Chamber of Mines office bearers and executives, mining industry CEOs and other industry stakeholders.

The meeting was convened and chaired by President Jacob Zuma to address the consequences of commodity price declines, unsustainable cost inflation and reduced productivity.

“While the Chamber fully supports the efforts in the recent MIGDETT process aimed at preserving jobs where possible, it is crucial that all stakeholders play a constructive role in moderating cost pressures to ensure the viability of the industry,” Teke said.

As a body, the Chamber of Mines is appealing to all parties to create a competitive, stable and predictable environment for the mining sector to ensure continued investment in mining.

The Forum, which was established in 2013 to implement the Framework Agreement for a sustainable mining industry following the violence that erupted in the platinum belt in 2012 and brings together government, labour and business to discuss developments in the mining sector.

It also represents a joint commitment by all stakeholders to enable stability, growth and transformation in South Africa’s mining industry.

Those companies in attendance indicated that the issues of employee indebtedness and housing and accommodation are of significant importance as they played an important role in the lead up to the events of 2012, and have been receiving significant attention by mining companies.

They have further committed to share detailed information with the Forum relating to the various interventions the companies have implemented to address these issues.

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