Gold Mining in South Africa Essay

The critical issue facing the mining industry according to Zoli Diliza brain executive, chamber of mines is ensuring that the mineral policies of South Africa aligns with the highest standard of administrative justice, promote an internationally accepted level of security of tenure and invariably promote an modify environment that will attract investors into south Africa, hence, improving her competitiveness. Golds rarity, beauty and durability have ensured its use as a culture medium of exchange as well as astore of valueThere has been a power crises issue in South Africa which has led to the shut start temporarily of major metallic operations. This is a serious problem that in that there is limited capacity to bring the mine workers of the enclosed spaces in the mine due to ventilation breakdown. Continues power outages which have resulted in break off operations in the goldmines obviously have a significant partake on world gold supplies mine, this is one of the reasons Sou th Africa is taking the backseat as the worlds largest producer of gold with china taking the wait seat. Lawrence William) (2008) It was recorded in 2010 that gold production was down to 200 tons. disrespect the substantial increase in the real price of gold in recent years, there has been a continuous decline in gold production , unless substantive mod capital investment in new mines is attracted the decline in production is likely to continue. There is likewise a decline in engineering science and manufacturing activities associated directly to the gold mining industry.Inorder words, the wake of the decline in gold production in south africa has been the impairment of major sectors of South Africas previous substantive heavy engineering and manufacturing capacity The gold industry in the early 1990s experienced a confining profit squeeze and voilatility in prices, that period was also seen by rampant inflation. The pressure that generated the profit squeeze was as a result of workers demand related to their salaries as awell as housing, health and safety.another(prenominal) important cause was due to dead(a) prices which reducesd reserves amd discouraged exploration of mines. And as expected, the profitabilitu constraint led to retrenchment of workers as a oversight mechanism for the mines. The gold industry in SA faced a tight profit squeeze in the early 1990s. The gold price was unplowed at a constant nominal rand value by the concord Bank from 1988 to 1992 despite rampant inflation. The 1987 great mineworkers strike was the highpoint of employment numbers. gain ground margins were under severe pressure both from worker demandsrelated to payment as well as housing and health and safetyand from stagnant commodity prices which reduced reserves and discouraged new exploration. In concomitant to profitability constraints, retrenchments were a weapon of mine management to reduce the effectiveness of the National Union of Mineworkers as it recovere d from the strikewhich had seen the dismissal of legion(predicate) union leaders. There was common cause that the industry needed to structure in order to extend its life. The article put forward proposals from a labour perspective.