So the Platinum strike has ended. It has set two records. Firstly, it was the longest strike in south Africas mining history. Secondly, it achieved the highest annual increase in wages. However the fact that the basic income of a South African mi9ne worker after three years of the agreement will only be R8 900 which translates into an annual income on only R 108 600 as compared the the R2.2 million an Australian mineworker and high school drop out earns, demonstrates the underlying problems with the South African mining industry. The strike revealed several things. (a) It is exposed the glut of platinum on global markets, given that a six month long strike did nothing to realise any upward movement of the price. This indicates huge stockpiles/inventories for the metal in the global markets. It also indicates appalling management of the metal by the three leading producers Angloplatinum, Implats and Lonmin (who produce more than 80% of platinum) and by the South African government of the industry. In 1959 the Government printer published a report The Mineral Resources of the Union of South Africa and on page 169 it reads, South Africa is one of the leading producers of platinum metlas, the others being Russia, Canada and Colombia. Some years ago these producers, by mutual agreement, undertook to restrict the sales of platinum on a quota basis. This step has to a large extent stabilised the price of the metal. It would seem as if our current government and the mine bosses think that despite having a near monopoly South Africa should remain a price taker instead of being a price maker. Under these circumstances the appallingly low wages that South African mine workers earn compared to their global counterparts will never be addressed. (b)There is not only an inequality gap between rich and poor in South Africa, but also an inequality gap between what mine and farm workers in South Africa earn and the wages of workers doing the same work in other countries such as Canada and Australia. Mr Mark Cutifani of Anglo Platinum said that Australian mine workers earn five times more than South African mine workers because Australian mine workers are ten times more productive. Well Mr Cutifani should note that Australian mine workers do not have to live in Zinc Shacks in squatter camps where water is only available once a day at twelve a clock at night and sometimes there is no water for weeks on end. Australian mineworkers do not have to work in the appallingly unhealthy and unsafe conditions that is the everyday lot of South african mine workers. (c) The strike also exposed the fact that the mining corporations undersell their platinum at below market value globally, possibly to avoid taxes and to lie about their actual revenue and income. Their response to the accusations by AIDC in this regard was lame, We are audited by independent auditors of high standing. One such global auditor PriceWaterhouseCoopers allowed Bret Kebble to steal the funds of the mining company he managed over an extended period. we all know that these audit firms played a major role in at least one global financial meltdown in recent history. A radical demand would be the nationalisation of the mines, a less radical demand would be an immediate commission of enquiry into mining in this country.
Posted on: Tue, 24 Jun 2014 07:11:45 +0000
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