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Mantashe is taking a proactive stance in restarting the mining industry. The government is clearly concerned about the impact that is unfolding in South Africa’s already fragile economy, which has also suffered from twin credit rating downgrades in addition to the blockade. (Photo: Unsplash / Shane Mclendon)
Business Maverick understands that Minerals Council SA, some unions, and the government have agreed in principle that 60% to 70% of the mining workforce will return to work on April 16/17, with protocols in place to contain the spread of Covid -19 . It is unclear whether the blockade will extend beyond that, but the mining industry plans to restart as quickly as possible.
The Minister of Mineral and Energy Resources, Gwede Mantashe, met with some unions and the mining industry on Wednesday April 8 to devise a way to keep the crucial sector going. This follows Tuesday’s meetings when the minister discussed what options were available should the blockade be extended.
A well-located source, who asked not to be identified, but with direct knowledge of what was discussed, said Business maverick:
“The Minerals Council and the department and the unions have agreed that the mining workers must return on April 16 and 17.
“When they return to the working groups, they have agreed that an intensive examination should be done and that those who are infected should be isolated and those who are ill should be sent to the hospital. The industry has agreed to make its hospitals available and it is expected that between 60% and 70% of the workforce will return to work, ”said the source.
Workers from neighboring countries like Lesotho and Mozambique who went home before the shutdown will receive transportation back to the mines and Mantashe will ask President Cyril Ramaphosa to speak to the leaders of those states to allow them to cross the border, the source said. .
Miners who have not been working will receive a payment by the 21 days of closure and companies that cannot afford to approach the Department of Labor to obtain the benefits of the FIU.
Mantashe tweeted on Wednesday that he was meeting with some unions and the Minerals Council confirmed that he had been in meetings with the minister about the mining industry’s response to Covid-19. But neither has released a statement on the outcome of the meetings.
It has to be said that Mantashe is taking a proactive stance on the issue and the government is clearly extremely concerned about the impact that is unfolding in South Africa’s already fragile economy, which has also suffered from twin credit rating downgrades in addition to the blockade. Eyebrows may be raised, but the fact is that the government and all stakeholders must find a way to restart parts of the economy in a safe way that does not accelerate the spread of the virus.
This remains unknown territory and it is unclear whether the National Command Council in charge of the government’s response to the pandemic will give the green light. Much will likely depend on how infection rates develop in the coming days.
Business maverick He also understands that neither Numsa nor Amcu were at the meetings, highlighting the emerging labor divisions on the subject.
Amcu said in a statement that it wanted government-issued national Covid-19 regulations for the mining and energy sector, and that it had presented these demands in a letter to the minister.
“As Amcu, we will not support any increase in mine operations before these regulations are agreed and published accordingly. We simply cannot allow miners to die due to a lacking and uncoordinated approach to this pandemic by individual mines, ”said Amcu President Joseph Mathunjwa. Acceptance of AMCU will be crucial for a smooth restart of the sector.
The open pit coal mines supplying Eskom, some iron ore operations, and some mechanized and chrome platinum mines have been producing at reduced capacity during the shutdown. There are platinum and chromium medical applications that partly explain why they have maintained some production.
Other industries are presumed to be carrying out similar initiatives in the face of the crisis, but nothing is set in stone. The mining sector represents approximately 8% of South Africa’s GDP and employs around 450,000 workers, who in turn have millions of dependents. Like everything else right now, the stakes are as high as the margin of error is slim. BM
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