South Africa warns mine unrest could spur recession – by Justine Gerardy (Globe and Mail – September 17, 2012)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — Agence France-Presse – South African police barred firebrand Julius Malema from a rally of striking miners Monday, as President Jacob Zuma warned that the country could ill-afford a recession over mine stoppages.

Mr. Zuma told a conference of the country’s powerful Cosatu labour group that 4.5 billion rand ($548-million U.S.) had been lost in gold and platinum production this year and a further 118 million rand lost in the coal sector. “The impact goes beyond the mining sector,” he cautioned, saying the manufacturing sector was showing strain.

“We cannot afford to go into a recession, and revert to the 2008 and 2009 period where the country lost close to a million jobs, which we are still battling to recover.” The warning came as British mining group Lonmin PLC cut its platinum sales forecasts over the continuing strike at its Marikana mine, which has been blighted by a violent strike that has crippled production for more than a month.

Lonmin became the epicentre of a wave of unrest to hit the vital mining sector in recent weeks, with tensions forcing several firms to suspend operations in the country’s platinum belt of northwestern Rustenburg. The striking miners at the Marikana mine meanwhile have accepted for the first time to lower their monthly salary demand of 12,500 rands, the mediator in the dispute said Monday.

Bishop Jo Seoka, president of the South African Council of Churches, told the SAPA news agency that he could not disclose the figure before they tabled it at negotiations with Lonmin set to resume Monday.

The miners were reportedly prepared to accept a monthly salary of 11,000 rands, according to news channel eNCA. The strikers claim they currently earn about 4,000 rand a month.

The government on Friday announced that it will no longer tolerate the unrest and ordered security forces to clamp down on illegal gatherings, weapons, threats and incitement which have characterised the spreading troubles.

Police at the weekend swooped on Marikana with the support of the army, seizing traditional weapons from workers and using rubber bullets and stun grenades to disperse workers gathering without police clearance.

For the rest of this article, please go to the Globe and Mail website: http://www.theglobeandmail.com/report-on-business/international-business/african-and-mideast-business/south-africa-warns-of-recession-on-mine-unrest/article4549432/

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