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Zuma weighs in on mine closures

Politics

Cape Town - President Jacob Zuma said on Monday that mining companies were almost engaging in “blackmail” when they announce plans to close mines and lay off workers.

Zuma's pre-recorded comments broadcast on CNBC Africa come as the government, unions and ruling African National Congress have come out strongly against proposals by Anglo American Platinum (Amplats) to mothball two mines and lay off 14 000 workers as it strives to return to profit.

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27/04/2011 President Jacob Zuma at the Union Building during the freedom day celebration. Picture : Sizwe Ndingane

“When the miners say we are cutting down, we are closing... You see, that is almost blackmail,” Zuma said.

Zuma also said “lower wages in the mining industry has led us into trouble”.

South Africa's platinum and gold sectors were rocked last year by violent strikes and labour violence that killed over 50 people and hit output.

Amplats, the world's top platinum producer, said on Monday that it had made its first annual loss last year because of the strikes and warned of growing labour unrest.

Zuma's remarks coincide with an investor conference on mining in Africa being held this week in Cape Town.

Separately, Mining Minister Susan Shabangu told the conference proposals by the ruling ANC to introduce a “resource tax” would be carried out with an intent to keep South Africa competitive among other major mining countries.

“We’ve got to compete with Australia and Canada. So if there are any taxes which must be implemented we must be mindful,” she said. - Reuters

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