HomeBase MetalsMining strikes have cost SA US$1.2 billion

Mining strikes have cost SA US$1.2 billion

Finance minister
Pravin Gordhan
Cape Town, South Africa — 26 October 2012 – The strikes that struck South African platinum and gold mines at the beginning of this year, and again in the past three months, have cost the country a total of just over R10 billion so far this year. 

Revealing this here, the National Treasury was quoted by Reuters as saying that output from the world’s top platinum mine and major gold producer has been curtailed by months of labour unrest that have hit the sector responsible for about 6% of gross domestic product, raising concerns about growth prospects.

“Declining mining output and the spread of strike activity has depressed activity in related industries including manufacturing, logistics and services, with negative consequences for GDP,” the Treasury said in its interim budget policy statement.

“In the year to August, mining output fell by 3.3%, with production of platinum group metals 15.3% lower, although strong iron ore demand from China has helped offset some of the decline in the platinum, gold and coal sectors,” it added.

Finance minister Pravin Gordhan, said it would take government some time to determine the full impact of the mining strife on growth.

“We will take that knock, recover from it and move on, because life doesn’t end now or next week. Life moves on,” he said during a press conference ahead of delivering his three-year budget policy statement in parliament.