More mines ‘likely to follow AngloGold path out’ of SA

Amid labour’s fears of looming job cuts, analysts yesterday warned more sectors in the mining industry could soon follow AngloGold Ashanti’s decision to dispose of local assets.

One expert said mining in South Africa was “no longer a sunrise, but a dying industry”.

Panic was sparked in the industry by AngloGold CEO Kelvin Dushnisky’s announcement this week that the world’s number three gold producer was studying projects in Colombia and Nevada, due to high costs in local operations.

National Union of Mineworkers (NUM) spokesperson Livhuwani Mammburu said: “We are disappointed and surprised, but we’re not shocked by the move. The company has already sold a lot of its operations in South Africa in the City of Matlosana and Carltonville areas.

“NUM has noted that since the ANC was elected into government in 1994, companies in mining and other industries started going global by selling off local assets and investing profits abroad.

“This has led to massive job cuts, with 10 000 workers already retrenched in AngloGold alone. This hurts us and our members.”

NUM would launch an artisan academy for the reskilling of retrenched mine workers next month, he added.

Alternative Information and Development Centre political economist Dominic Brown said mining was “no longer a sunrise industry”.

“What is happening in the gold sector is an indication of what is likely to happen in coal, platinum and other sectors.”

For more news your way, download The Citizen’s app for iOS and Android.