Safety in focus at Mining Indaba

A mineworker works at the rock face at the Impala Platinum mine in Rustenburg, South Africa, on Wednesday, June 4, 2008. Impala Platinum Holdings Ltd is the world's second-biggest platinum producer. Photographer: Nadine Hutton/Bloomberg News

A mineworker works at the rock face at the Impala Platinum mine in Rustenburg, South Africa, on Wednesday, June 4, 2008. Impala Platinum Holdings Ltd is the world's second-biggest platinum producer. Photographer: Nadine Hutton/Bloomberg News

Published Feb 8, 2016

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Johannesburg - Mine safety may top the agenda when South Africa hosts the annual Mining Indaba in Cape Town today in the aftermath of the mining disaster on Friday where close to 100 workers almost lost their lives.

Job cuts, the uncertain regulatory environment and the further deterioration in commodity prices are also expected to be on the agenda.

Mineral Resources Minister Mosebenzi Zwane last week said the indaba was an ideal opportunity to find ways to revive the mining industry.

He said the government was working to ensure policy certainty through the review of the Mineral and Petroleum Resources Development Act.

Under review

The act was returned to Parliament for a rewrite over concerns of state-ownership of mineral wealth.

“As we speak the act is under review. We should be ready with it around the end of April,” Zwane said.

“We are engaging with all stakeholders. Once we agree with the stakeholders, it is our duty as the government to implement the law.”

Speaking ahead of the indaba, Harmony chief executive Peter Steenkamp said South Africa had to resolve its empowerment concerns, as it turned investors away from.

“The major issue involves once empowered, always empowered.

“We need clarity on that, so we can put it behind us,” he added, referring to a court battle in which the industry has taken the government to court over the interpretation of the law on empowerment.

Investors have been piling into bullion as a safe haven. Gold was fixed $6 (R96) lower at $1 150.35 an ounce in London on Friday afternoon.

The mining industry, which has been beset by a myriad of problems, has attracted public outrage over whether it is doing enough to protect employees.

Calls for government intervention intensified following an accident on Friday.

Three mineworkers were trapped underground and 87 others were rescued after a shaft at the Vantage Goldfields Lily Mine caved in near Barberton, Mpumalanga.

Lax safety

The shaft caved in after the start of the morning shift. The main crown pillar collapsed into the underground open stopes, trapping miners, the Department of Mineral Resources said in a statement.

Organised labour lashed out at mining houses for lax safety arrangements, and Zwane called for the companies to step up safety measures.

Cosatu said

Zwane should work with all stakeholders to ensure that the industry reaches the zero rate on fatalities.

“We also call on the employers to take seriously the issue of health and safety, and stop looking after their pockets, but also look after those who generate those profits,” Cosatu spokesman Sizwe Pamla said.

“The safety of the workers is not negotiable and should always take priority over everything else.”

Downsizing

Four miners died in an underground fire at Impala Platinum, the world’s second biggest platinum producer last month.

Harmony Gold reported a fatality at its Masimong mine in the Free State last month.

In addition to safety concerns, the restructuring of companies because of the low metal prices has threatened 32 000 jobs since last year.

The latest major announcements of downsizing came from South32 and Samancor last week.

Previously Anglo American had announced that it would cut jobs.

The animosity between the government and the mining industry, legacy issues exacerbated by the Marikana massacre, and rising electricity costs are some of the problems facing the industry.

According to mining companies, cost escalation is an issue as 14 percent of the costs are attributed to electricity, while labour contributes more than 50 percent towards costs, lowering companies’ profits.

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