South Africa’s mining sector anticipates adding jobs to the economy but the extent of job creation is tempered by the uncertainty around the nationalisation debate and the legislative framework.
At least six mining companies, including Kumba Iron Ore, Nkwe Platinum and Xstrata, have said they planned to employ more than 22 000 people starting this year.
In a country beset with high unemployment, any new jobs are welcome, highlighted by the fact that job creation took centre stage in President Jacob Zuma’s State of the Nation speech.
The South African mining industry employs about 491 000 people, down from 518 519 in 2008, a decline of 5.1 percent.
Abdul Davids,
the head of research at Kagiso Asset Management, said the creation of jobs was good news. “Prices (of commodities) are high because of flooding that happened in Australia. You find that higher prices attract more supply.”
A snap survey of mining executives by Business Report last week, showed that iron ore, platinum and coal mining companies are set to lead the hiring spree, thanks to growing global demand for these commodities.
Chris Griffith, the chief executive of Kumba Iron Ore, said the company would create up to 14 000 jobs by 2019 at its Kolomela operation.
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We are likely to see increased employment opportunities, especially between 2013 and 2019 when production will increase by 20 million tons. A total of 14 000 jobs will have been created during this period”.
A significant number of the jobs would be created in the Northern Cape and Limpopo, Griffith said. He said that an initial 555 people had already been added to Kumba’s workforce at Kolomela, an iron ore mine in North West.
Xstrata Alloys, a unit of coal and metal mining company Xstrata, plans to create nearly 4 500 permanent jobs within the next five years.
Xstrata spokesman Songezo Zibi said the main contributors to these jobs would be the Lion Ferrochrome second phase expansion (a venture with Merafe Resources) and the development of underground operations at the Eland platinum mine near Brits.
He said the jobs would be across the spectrum of mining and its support services, including core mining, engineering, maintenance, accounting and human resources.
Barend Petersen, the executive chairman of De Beers Consolidated Mines, said the diamond producer aimed to create and retain jobs during construction of its underground operation at Venetia mine, located about 25km south of the border with Botswana.
The company has approved a feasibility study into building underground operations at Venetia, an open-cast mine in Limpopo, and will decide next year whether to invest. Should it go ahead, 800 jobs would be created, Petersen said.
Smaller
players are also gearing up to add jobs.
Junior coal mining firm Coal of Africa expects to create 882 jobs at its Makhado coking coal operation in Limpopo over five years.
Coal of Africa spokesman Sakhile Ndlovu said in the longer term the bulk of its employment opportunities, in excess of 28 000 indirect jobs would be provided in Limpopo.
Hethen Hira of Wits Gold said at the Investing in African Mining Indaba that up to 400 jobs would be created when the company constructs a shaft over two years and an additional 1 000 jobs would be created for miners at the shallow high-grade De Bron/Merriespruit project which is due to commence in 2015.
Nkwe Platinum spokeswoman Staff Sithole said the company’s Garatau mine on the Eastern Bushveld Complex would create 2 500 jobs.
There is uncertainty in the mining industry over the possibility of nationalisation, which will be decided at the ANC’s policy conference in 2012, and over the legislative framework, but Chinese demand for raw materials is driving optimism. - Business Report