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Production in the mining sector has plummeted by 18.1 per cent in the first quarter of 2016. This is the third quarter that saw a drop in mining production out of the last four and it is the biggest drop by far.
The drop in production evidences a sector in crisis and explains the jobs bloodbath which is currently ongoing in the sector. It is also a herald of further job losses as well as potential disinvestment and recession.
The ANC must get its head out of the sand and recognise thereal cause of the slow-motion collapse of the mining sector. It’s not international trading conditions alone but also wads of investment unfriendly regulations and corruption in the mining space that adversely affect this sector and invariably leads to the shedding of jobs.
A drastic change in approach is urgently required to prevent the impending jobs and investment fallout. Government could start by withdrawing the ill-conceived MPRDA Bill, which continues to languish in legislative doldrums, as well as the new draft Mining Charter which blindsided the industry earlier this year.
Issued by DA