Gwede Mantashe suggests that small mining companies can take over shafts that are put on care and maintenance. He says they have smaller overheads and can thus mine the shafts profitably.
This idea is problematic and hides the fact that mining requires very large amounts of mostly foreign capital to remain in business.
Mantashe’s idea rejects the concept of economies of scale. It suggests that when a large mining company buys another company, the owners are contemplating lower profits for the sake of having a larger company.
Sibanye-Stillwater is obviously constantly reducing its profits by buying other platinum producers. This is nonsensical.
The labour laws on their own require a large department of human resources. The safety requirements are onerous and require the education of operators.
Social responsibility requirements, especially for mining companies, need a department of their own. The need for a rehabilitation fund, maintaining it and then spending it are not for the faint hearted.
With his experience in the mining industry, Mantashe must know all this.
John Weinkove
Craighall