Industry analysts have said that the South Africa's gold mining industry, which was once the engine of job creation in the country, is facing several serious issues and the boon in the sector might be over.
The mining sector in the country is facing increased costs, labour unrest and falling production in recent times. There are concerns that the gold mines might be heading for exhaustion in South Africa. Experts warn that the exhaustion of gold mines will force the mine labour that was attracted to the sector from rural areas.
The labour force in the sector is now affecting profitability due to low skills and inequality in incomes spark demands for hike in payments. The sector continues to remain tensed after sudden violent strikes that affected production in a significant manner.
The industry now employs much fewer workers than it did at the time of the country's transformation from the apartheid to the democratic rule. The fall is a well-known fact in the country. At the time of unrest in the sector, the mine owners are looking to preserve profitability by controlling costs and have now found themselves between the government and angry workers.
- Toshiba, United Technologies ink agreement for global growth in HVAC solutions
- Google offers artificial personal assistant for users ready to give up personal info
- Apple launches iPhone 6, iPhone 6 Plus in India
- Google profits plunges 5 percent YOY, in Q3
- HCL Technologies Q1 Net up 32.3% at Rs 1,873 crore