Marikana a permanent loss to S.African economy

by Trust Matsilele 0

Northam Platinum reports comprehensive profit of R354 million

It has benn two years since the massacre occured at Marikana which 34 miners dead.

Chris Hart, a chief strategist at Investment Solutions, told CNBC Africa that labour unrest was one of South Africa’s big economic mistakes the country was making.  

(WATCH VIDEOReflecting on the repercussions of Marikana massacre)

“Marikana was a focal point of ongoing problems of a structural nature in the labour, business and government relationship,” Hart noted.

“We have a very old and out fashioned ideology behind the tripartite relationship.”

He noted that some problems within this alliance were a result of power struggles within the union itself.

“The average members on the ground’s specific interests are no longer necessarily the top point of the union agenda, permanent loss is with the members and not union leaders,” Hart noted.

Hart added that it was critical for the country to prioritise production if South Africa was to benefits from its mineral deposits.

(WATCH VIDEO: The role garnishing orders played in Marikana aftermath)

“The minerals on the ground mean nothing unless we bring them to the surface otherwise those minerals are worth nothing,” he said.

“The fact that South Africa has enormous amount of gas means nothing until we bring it out of the ground.”

Hart said though mining was not the greatest contributor to the economy, it played a critical role as it was the start of the value chain in the economy as it feeds to other complimentary sectors.

He lamented unjustified bonus management was remunerating itself.

“The management has been paying itself bonuses when companies have been encountering low productivity,” said Hart.

“As a consequence of problems in the mining sector, companies should now start to look at issues like costs, productivity among others, and they have to make adjustments so as to put the industry into a viable footing.”