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First Platinum, Now Gold: As South African Miners Strike Spreads, Thousands Of Ounces Remain In The Ground
Two weeks ago we showed dramatic footage as striking miners at Lonmin's Marikana South Africa platinum mine were fired upon by local the local cops, killing dozens of protesters in the process. Aside from the implications of what happens when the establishment loses control and desperate workers revolt with complete disregard for their own safety, the strike has crippled the world's third largest platinum maker, and has cut daily production of the precious metal by 2,500 ounces. Since then the Lonmin situation has remained critical, with just 6% of the South African company's workers turning up for work last week. In the meantime, the strike bug has gone airborne, and has now impacted Gold Fields, the world's fourth largest gold mine. From the FT: "Some 12,000 workers at a gold mine operated by Gold Fields have gone on strike, in the latest industrial strife to hit South Africa’s mining industry. Sven Lunsche, a spokesman for Gold Fields, said the wild-cat strike was not directly related to the crisis at the Marikana platinum complex, where 44 people have been killed in violence after rock drill operators downed their tools to demand higher wages on August 10. But he acknowledged that “the atmosphere in the mining industry is very volatile at the moment and this may have had an indirect impact on the situation". The bottom line: "The strike was costing the company 1,660 gold ounces of production a day, Mr Lunsche said." In other words in addition to the fear of a resumption in money printing by central bankers, the gold price will now have to deal with the added fear that supply disruptions just may hamper China's stealthy hording attempts to become the world's biggest holder of physical gold, or at least at sub $2000/oz prices.
Furthermore, it appears that where the striking miners of Lonmin and Gold Fields have boldly gone, many more local unionized workers are set to go as well, in the process shuttering the biggest industry in the Southern African nation:
The unrest at Marikana mines operated by Lonmin, the London-listed company, has been complicated by a dispute between the NUM and a rival union, the Association of Mineworkers and Construction Union, a newer body that has been making inroads into the platinum sector.
Amcu has no representation at the Gold Fields mine, although it has previously attempted to recruit members there. Industry officials have said the fact that gold producers use collective bargaining to negotiate with unions should reduce the risk of the kind of dispute afflicting Lonmin spreading to that sector.
But the Marikana crisis has triggered nervousness throughout the industry, while also putting focus on what appears to be growing dissatisfaction among workers with the NUM, which has been the dominant union in mining for three decades.
Lesiba Seshoka, a spokesman for the NUM, said the union had sent a team to the KDC mine to see what the workers’ concerns were. But he said suggestions that it was related to an internal union dispute at the mine were “not true”.
As a reminder, South Africa is the world's third largest producer of gold in the world (although the output has been steadily declining year after year), and the broader mining accounts for just under 20% of the country's GDP.
Should the local workers grasp that they have the bulk of the leverage in this critical industry, it is unknown how far the metal production shutdown will extend, and how far the price of gold will rise as fears of a persistent supply contraction, coupled with once again increasing demand by both retail and central banks, spread.
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Nationalize what? The best of the mining potential has already be consumed by 'Americans'
No miracle for South Africa, the 'Americans' left a place that is downing to depletion of resources.
Shut the fuck up already you foaming-at-the-mouth bigot and raging hypocrite. My God you are a tedious and insane one-note troll.
Americans left? Where? There was no real US presence in SA you idiot, most of the companies were owned and ran by South African nationals. The Brits and Indians were there, but to a lesser degree. What left was American investment dollars {much of Europe too}. And why shouldn't they have left, it was the only smart thing to have done under the circumstances. Communist took over the country. I am only surprised they have taken so long to nationalize EVERYTHING. And no, once it is done, the ordinary citizen will not see any of the revenue. It will be plundered, just like Mugabe and his wife {know as "The First Shopper", instead of the First Lady} have done to Zimbabwe. You see, the lure of communism is that the people will inherit the wealth of the nation. They soon learn it was all just a lie, as the party leaders keep it all for themselves. You know NOTHING of how the real world works.
Ever hear of Anglo American Mining Corp? Sir Ernest Oppenheimer? A German Jew who took over the diamond industry in SA.
He converted to Chrisitanity they say. Hmmm.
diamond's are a catholic jew's best friend?
Americans left? Where? There was no real US presence in SA you idiot,
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Yes, and 'Americanism' does not exist.
'Americans' are proponents of 'Americanism'.
'Americans' are really ready to hide behind anything.
First, they claimed they could not understand a renaming of 'Americanism' as US citizens and now, they are claiming 'Americans' as a nationality of some sort.
Get a grip, 'Americans' are proponents of 'Americanism'.
Mandela himself is a proponent of 'Americanism' and thus an 'American'.
And another example of 'American' strawsman building...
'Americans' left the place a zone down to depletion.
It does not mean 'Americans' left South Africa to move elsewhere.
The high consumption rate provoked by 'American' economics has pushed South Africa on the depletion path.
There are still many 'Americans' in South Africa...
best way to nationalise mines; call them King Solomon's wines. Nobody wants wines so those foreign investors will just walk away. Then SA can drink its own wine and thats fine as the wine comes from mine, no more whines about foreign crimes!