THE JUNIOR AND EMERGING MINERS DESK
Alex Khumalo, Errol Smart and Grant Mitchell discuss junior mining at the Investing in African Mining Indaba
Photo by: Creamer Media
A survey of about 25 junior miners, who are members of the Minerals Council South Africa junior and emerging miners desk, conducted by the desk last month, showed that the majority of juniors intended to pay full wages for the first two weeks of the Covid-19 lockdown – docking it as paid leave – and thereafter apply for Unemployment Insurance Fund support or Temporary Employer/Employee Relief Scheme support.
The rest of the juniors in the survey said they would have to implement either forced unpaid leave, paid yearly leave, paid special leave or a hybrid of paid yearly and special leave.
“This seems to indicate that juniors are on the back foot,” says Minerals Council South Africa junior and emerging miners desk head Grant Mitchell, noting that, by contrast, many larger mining companies have been able to continue paying full salaries throughout the period.
According to a 2019 survey conducted by the Minerals Council, junior miners accounted for about 10%, or 45 000, of permanent mining jobs. Several junior miners fear that retrenchments in the coming months will be inevitable.
Since President Cyril Ramaphosa announced last month that mines could resume operations at 50% capacity, only 65% of juniors surveyed said they would be able to resume operations at that capacity, while 10% said they would have to resume at less than 25% capacity.
Despite the difficult circumstances, Mitchell finds it promising that 95% of respondents to the April survey said they would follow the post-lockdown guidelines developed and circulated by the Minerals Council, with 55% saying they would add additional health and safety measures.
Most of the surveyed companies said that, post lockdown, they aimed to implement improved regular screening procedures, physical distancing, shift rotations, mask and glove use enforcement, proper sanitation facilities and the closing of common areas.
However, some companies have called for financial assistance to cover the costs of occupational doctors conducting screenings, as well as for some relief from energy, water and other municipal bills.
“Many juniors are feeling over- whelmed at this time, and the Minerals Council is doing everything in its power to offer support.”
Prior to the Covid-19 pandemic, the junior and emerging miners desk had initiated discussions with the Industrial Development Corporation and the Public Investment Corporation to set up a fund for junior miners.
Minerals Council South Africa social performance head Alex Khumalo explains that these discussions have been put on hold since the lockdown was initiated, owing to all parties being otherwise preoccupied with Covid-19 crisis management.
He believes that perhaps it is time to re-engage and restart the discussions to provide another avenue of support for ailing juniors.