Mine strike to stifle recovery

mining_freda_rebeccaBULAWAYO - The ongoing strike led by the 25 000 member Associated Mineworkers Union threatens to reverse the positive developments that had started to emerge.

Workers in the mining sector downed tools last week Wednesday demanding a minimum wage of US$496 per month up from the current US$120.

Analysts have called for immediate intervention before more damage is done to the fragile economy that is still need of financial support before it gets back to pre 1998 production levels.

The mining industry representative body, the Chamber of Mines chief executive officer, Chris Hokonya this week said mining companies were still in a fragile state and could not afford such a hefty increment.

Mining companies can only pay what is within their means until such a time when they have successfully recovered, but at the moment that will not be possible, he said.

Industry officials estimate that the countrys gold mining firms could lose up to US$8-million this month because of the pay dispute.

Collen Gura, CEO of Metallon Gold said, The impact of the strike is serious. As we speak, we are talking about 8 000 oz, that’s about $8-million.

Post published in: Economy

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