DA: Mining minister needs to heed industry rather than bully it

Ngoako Ramatlhodi
Ngoako Ramatlhodi
The Democratic Alliance on Wednesday warned the ruling party that “if it tries to strongarm business‚ there will soon be no business left to strongarm”.

This was in reaction to reports that mining minister Ngoako Ramatlhodi withdrew the mining licence of the Optimum Colliery.

The Times reported on Wednesday that in the past two months Ramatlhodi has issued 400 notices — 100 of them last week — to mining companies not complying with labour and mining regulations.

The latest casualty was Glencore’s Optimum mine‚ which was ordered to shut down on Tuesday. It had allegedly failed to follow proper practices when it embarked on retrenchments‚ which Glencore refuted.

“Ramatlhodi’s threat that other mining companies will meet the same fate if they cut jobs is obviously a reaction to the mounting wave of job cuts announced in the last few weeks that follow a trend of job losses over the past two years‚” the DA’s James Lorimer said.

“The job losses are caused by plummeting world prices for South African minerals combined with a thicket of unclear‚ poorly conceived‚ and corruptly implemented mining regulations.”

Lorimer said the African National Congress government should use October’s Mining Phakisa for “long-overdue” negotiations with industry stakeholders.

“This will be a far more fruitful route for the minister to follow‚ but will only be so if he actually listens to the industry when they tell him of the realities of the mining business‚” Lorimer expanded.

“He will then need to change the ANC government’s approach to mining to work with‚ rather than against‚ the industry.”

Another question Lorimer had for Ramatlhodi‚ in the wake of Optimum being shut down was: “Where does he think Eskom will get the coal it needs to run Hendrina power station?

“If the minister continues to try and strongarm the industry into maintaining uneconomic mines‚ then the stream of job losses risks becoming a flood.”

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