South African Gold Miners’ Strike Brings Mining to a Halt

Around 100,000 South African gold miners, fighting for higher wages, brought the country’s mines to a standstill on yesterday (Monday) in the first industry-wide strike in 18 years.

“The strike is 100 percent countrywide. All our people, about 100,000 of them, are on strike,” said Gwede Mantashe, general secretary of the National Union of Mineworkers (NUM).

“It seems all the gold mines have come to a standstill,” Chamber of Mines head negotiator Frans Barker said.

The strike paralyzed operations at the world's No 2 gold producer, AngloGold Ashanti, fourth-ranked Gold Fields, sixth-placed Harmony Gold and South Deep, Barker said.

He added that the chamber, which negotiates wages on behalf of gold producers, estimated 40,000 ounces of gold production were being lost daily, with around 130 million rand ($20.11 million) in combined lost revenue a day due to the industrial action.

The effect on the jewelry industry is yet to be felt, however manufacturers around the world are following the situation. South Africa is the world’s largest gold producer, first discovered in 1886. In 2003 gold production stood at to 373,074 kg, falling an estimated 6.5 percent.