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Gordhan says mining firms must reverse job cuts

31st May 2019

By: Bloomberg

  

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South Africa’s mining companies must reverse recent decisions to cut jobs in the industry to help revive the economy and boost investor confidence, according to Public Enterprises Minister Pravin Gordhan.

His comments came a day after Lonmin said it planned to cut 4 100 workers at platinum mines that are being closed down, while, in February, Sibanye Gold said restructuring of its unprofitable gold mining operations in South Africa could lead to more than 6 000 job losses.

“Companies must ensure there is a balance in what they do in respect of shareholder expectations and societal expectations,” Gordhan said at a dinner hosted by Minerals Council South Africa in Johannesburg last week.

While mining has long been a linchpin of the economy, uncertainty over government policy, strikes and rising costs have all contributed to an investment downturn that is hurting the country’s overall growth.

Edited by Bloomberg

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