Challenges in the mining sector, and the Marikana tragedy specifically, has led to lower economic growth prospects for South Africa for 2012.This is according to Finance minister Pravin Gordhan’s Medium Term Budget Policy Statement (MTBPS), released today, which adds structural constraints in the economy as current economic challenges.In his MTBPS speech in Parliament today, Gordhan said: “We have witnessed a crisis of labour relations in the mining sector, with tragic consequences in Marikana.”Speaking today, Gordhan assured South Africans though: “We will resolve confidence in labour market institutions, and act to combat violence and lawlessness.”The MTBPS states that widespread strikes in the mining sector have had a significant effect on the economy in 2012. “The events at Lonmin’s Marikana mine and the spread of industrial action since August have dented confidence and lowered growth prospects for the remainder of the year.”The National Treasury estimates that the total value of production lost to platinum and gold mining strikes and stoppages since the opening of the year has amounted to about R10.1 billion.Labour issues and labour reform form a common thread through the MTBPS.
The MTBPS states that strike activity in mining and other sectors, the balance between electricity supply and demand, weak business confidence, and a widening current account deficit reflect a series of binding constraints and unsustainable imbalances that hold back investment and job creation.
– By Christelle du Toit
