Mining industry South Africa to shed 10 000 jobs
The Solidarity union claims that eight mines have issued lay off notices to about 9,000 workers. Another 1,000 job losses were expected.
South Africa has always thrived on mining - gold for instance, or more importantly platinum. Although mining is still one of the strongest performing industries, the credit crisis which led to a global economic meltdown has causes problems.
Together with currencies, the prices of commodities have plummeted. Platinum, mainly used in the motoring industry, has for instance lost 60% of its value over the past months. It is therefore not a surprise that the bulk of lay-offs come from South Africa's platinum mines. Diamond mines are also expect to shed jobs. Due to the economic turmoil, the hunger for luxury goods has subsided.
In addition to the declining prices of natural resources, the export of raw materials has dropped significantly.
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Cape Town, Western Cape, South Africa