AngloGold Ashanti downsizing

An announcement from AngloGold Ashanti's chief yesterday, Mark Cutifani, was rather sobering, but was something that we had been talking about for some time. Job losses in the mining sector as a result of South African mining houses shutting less profitable operations is closer than you think. From the release, AngloGold Ashanti update on unprotected strike at SA mines: "Clearly for South Africa's gold sector, as for many others, there is a very clear trade-off between investing in the sustainability of our business and not putting employment at risk. If the current unprotected strike continues, it compounds the potential likelihood of a premature downsizing of AngloGold Ashanti's South African operations."


A premature downsizing means that AngloGold Ashanti was always going to be a smaller business locally. The key point for me I guess was the following: "In a country where roughly one in four people do not have work, it is incomprehensible that strikers are engaged in activities that threaten jobs in a cornerstone industry that is central to South Africa's growth aspirations, and where wage rates are highly competitive as compared to other labour intensive sectors in the country." Again we have explored the issues around skill-set versus remuneration in South Africa.


The business have made it clear to all concerned. And like we have always thought, this means only bad things for our country. Fewer jobs, less export revenue, less economic activity, that cannot be a good thing. And instead of being concerned about the issue, government is worried about the numbers of people in the ruling party branch structure and who is going to win at Mangaung. That seems where the focus is. I cannot blame either the incumbent, or the pretender, as well as their various factions. The job of a politician is firstly to make sure that they get re-elected. And right now, it is a bun fight of epic levels. How I wish Mangaung was tomorrow. It amazes me how everyone talks about the ANC National conference of 2012 as a place, Mangaung. Well, at least we are all on the same page with that one.