Article: Mining job cuts a shock: minister

Grade 10 Economics. I called it as soon has they received those ridiculous salary increases. This will lead to more strike action, because now "we don't have jobs". Hopefully this will result in those retrenched to change their vote. God I hope so.
 
MickeyD said:
What's sadder still is that many of us predicted this scenario many moons ago, yet she had to wait until 7 days ago for someone to inform her of the reality.
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Her ego dictated to her that because they had met, this would not be the outcome. MECs by and large believe that they are the be-all and end-all dictators of strategy to private business in this country, and fail to understand their more important role of engaging positively in the space. Their goals are completely misaligned when it comes to their role in government and the motives of private business, mostly because they do not understand business. Most of them have only ever worked in the public sector...
 
Zuma: Mining profits must benefit all

Johannesburg - South Africa's mining industry cannot continue to make "huge profits" without benefiting the country's citizens, President Jacob Zuma said on Monday.

While the mining industry had shaped the country, it had many shortcomings such as the migrant labour system, he said in an interview on CNBC's Political Exchange.

He sought to allay investor fears about changes to resource rents, mining royalties and taxes.

"People will always have some nervousness when we say things... When Zimbabwe said indigenisation people jumped all over. Today people go to Zimbabwe to be part of indigenisation."

However, things could not stay the same.

"(Mining) can't make huge profits with no benefits to the people of the country... (if you are not) addressing the economic need of the country you must know we are dealing with a problem."
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http://www.fin24.com/Economy/Zuma-Mining-profits-must-benefit-all-20130115

this ^^
 
DJ... said:
They are the makers of their own destiny here, and that destiny is straight to the UIF queue for their members...
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Unfortunate thing is this not limited to those joining the UIF queue, the knock on effect to ancillary industries is also big so at the end of the day the entire country will probably feel the effects. Wonder who they gonna blame now...
 
"The minister said her department regretted the conduct of Anglo American in such an important business decisions that would impact on the country's economy."

I find this statement ironic when at the same time the government are pushing ahead with e-tolls in Gauteng and Eskom is planning another electricity price hike. Both decisions which themselves have a major impact on the economy.
 
Ecco said:
"The minister said her department regretted the conduct of Anglo American in such an important business decisions that would impact on the country's economy."

I find this statement ironic when at the same time the government are pushing ahead with e-tolls in Gauteng and Eskom is planning another electricity price hike. Both decisions which themselves have a major impact on the economy.
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Brilliant, well said. **** the gvt and **** the ANC
 
MickeyD said:
What's sadder still is that many of us predicted this scenario many moons ago, yet she had to wait until 7 days ago for someone to inform her of the reality.
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but now that she has known for 7 days, what solutions are she offering?? nothing!!
just pass the blame .. really makes you wonder why a minister is even needed!!
 
DJ... said:
It was inevitable the way you lot have managed the problems, you dipschitted moron.

You cannot expect large cost-burdened companies to continue in the environment you have engendered. They are not only closing down mines, but have put in place a Capex spend-cut programme to reduce Capex spend by 25% in ten years - these are not relative-based either, these are actualised cuts on current value. Factor in inflation and you realise exactly what a massive blow this is to the industry.

This is the biggest cock up of the current regime to date in terms of the economy, and AngloPlats will not be the last to cut operations here. The others will follow suit in the coming year.

And to those who believe that this is simply a reaction to lower demand, please bear in mind that lower demand has been offset by higher prices. It is barely as significant a factor as the government would have you believe...
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The platinum sector was in trouble even before the strikes. Sure, the strikes didn't help one bit and to blame the minister is dishonest. Analysts have been pressuring the platinum mining companies to cut production to shore up the falling prices by stifling demand. This was long before the strikes and I think Impala IIRC was first to close down a mine(s) because the sector was battling because of the low prices and demand.
 
lucifir said:
but now that she has known for 7 days, what solutions are she offering?? nothing!!
just pass the blame .. really makes you wonder why a minister is even needed!!
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There are proposals on the table. All of them involve redistribution of profits outside of the company with no return. Whereas they could instead incentivise development with tax cuts, thus promoting the industry and making SA a viable investment destination during a time where pressure on the market is at maximum. However they do not want to sacrifice tax revenue, so they refuse to propose these plans. They are at the end of the day killing off the industry themselves, while trying to lay the blame at the doorstep of private companies.

They do so because they are proponents of communism by and large. Instead of realising longer term benefits if increased investment in the country, they instead protect their own revenue. Government are hypocrites in this argument, and the real culprits of economic terrorism in this country...
 
Gunner182 said:
Hopefully this will result in those retrenched to change their vote. God I hope so.
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Don't hold your breath. Although technically this country is a democracy, in practice blacks vote along tribal lines instead of what is in their and future generations best interests.
 
R13... said:
The platinum sector was in trouble even before the strikes. Sure, the strikes didn't help one bit and to blame the minister is dishonest. Analysts have been pressuring the platinum mining companies to cut production to shore up the falling prices by stifling demand. This was long before the strikes and I think Impala IIRC was first to close down a mine(s) because the sector was battling because of the low prices and demand.
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We've done this time and time again. You will not win this argument. The industry has been under pressure, as has every other bloody industry in the country. Analysts have called for across-the-board spending cuts in every sector of the economy. They could cushion the increased cost-burden on condition that prices stabilised, but government refused to intervene in this respect when approached by the industry as a whole. They could cushion increased cost burdens had government stepped in to address labour unrest. They could cushion cost burden increases had output been able to increase and had government setup bilateral trade agreements with resources-importing countries - they refused.

Now take increased cost of extraction, massive hikes in the largest non-capex expenditure of the company, lower output, lower efficiency, and combine it with problems relating to investor confidence and you have a disaster on your hands. The government not only did nothing to assist in any of these aspects, but in fact were the catalysts and protagonists on all fronts. To claim that the government, and specifically the minister is not to blame is fscking pathetic...
 
DJ... said:
We've done this time and time again. You will not win this argument. The industry has been under pressure, as has every other bloody industry in the country. Analysts have called for across-the-board spending cuts in every sector of the economy. They could cushion the increased cost-burden on condition that prices stabilised, but government refused to intervene in this respect when approached by the industry as a whole. They could cushion increased cost burdens had government stepped in to address labour unrest. They could cushion cost burden increases had output been able to increase and had government setup bilateral trade agreements with resources-importing countries - they refused.

Now take increased cost of extraction, massive hikes in the largest non-capex expenditure of the company, lower output, lower efficiency, and combine it with problems relating to investor confidence and you have a disaster on your hands. The government not only did nothing to assist in any of these aspects, but in fact were the catalysts and protagonists on all fronts. To claim that the government, and specifically the minister is not to blame is fscking pathetic...
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I'm not trying to win anything here, just saying your slip is showing.
But it is absurd that you could suggest that an industry that is believed to be in trouble because of oversupply can cushion its problems by flooding the market even further with by making even more of the product:wtf:.
 
R13... said:
I'm not trying to win anything here, just saying your slip is showing.
But it is absurd that you could suggest that an industry that is believed to be in trouble because of oversupply can cushion its problems by flooding the market even further with by making even more of the product:wtf:.
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Argh ffs. Haven't got time for this but platinum oversupply has resulted in prices remaining stagnant - it hasn't had the kind of effect you're dreaming up. Inventory supply is commonplace in anycase. The surplus is also on the decrease.

What I posted earlier would have helped to curb over-supply issues in any case by helping them to garner more control over the supply. And I certainly didn't suggest anyone flood the market. Where on earth you dreamed that one up I don't know. I went into quite a lot of detail which you breezed over and then supplanted some ridiculous argument in my mouth. Seems it isn't my "slip showing" after all...
 
Ah 14000 jobs .. the real cost of the illegal strikes. Oh yeah, and 34 lives.
 
R13... said:
The platinum sector was in trouble even before the strikes. Sure, the strikes didn't help one bit and to blame the minister is dishonest. Analysts have been pressuring the platinum mining companies to cut production to shore up the falling prices by stifling demand. This was long before the strikes and I think Impala IIRC was first to close down a mine(s) because the sector was battling because of the low prices and demand.
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It has been under pressure for a long time. Ten years ago, the industry was forecasting platinum price today well above $2000 and inflation related production cost increases. However, production costs have escallated well above inflation which put many of the mines underpressure, especially the deep mines in Rusternburg area Western Limb and and new projects in Eastern Limb.

Althought mines like Northam, Amandelbult, Tumela are relatively deeper than Rusternburg operations, their average head grade is high and compensates the higher mining costs.

To blame the whole demise on strike is convenient. I know production people in mining have a tendency to shift blame.They are quick to shift blame to poor geological conditions, natural rock failures, safety stoppages when problems are due to inefficiencies, lack of planning and mining to plan.

I'm not underplaying the role of the strikes. They have worsed a bad situation to a point of no recovery.

Today we were already discussing contingency plans because we now expect the AngloPlatinum retrenchments to induce a bigger problem than last year. Sympathy strikes across board, intimidation, violence, contractors strike, safety.
 
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Ahh.. goverment always "shocked" when there is a big fckup. Like they couldn't see it coming from a mile
 
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