[miningmx.com] – THE protracted strike in the platinum sector would hamper South Africa’s economic growth and was a cause for concern, said Lungisa Fuzile, director-general of the country’s National Treasury.
In an interview with Bloomberg News, Fuzile said the work stoppage was a concern as it occured “… at a time when the current account deficit is hovering at around 5% of gross domestic product”.
“Striking is part of the labor relations processes, but when the strikes get protracted or somewhat violent, then those developments are cause for concern,’ he said.
“Protracted strikes, especially in a sector like mining, which is very important in terms of backward and forward linkages to other sectors, like manufacturing, like the chemical sector, is a cause for concern,’ Fuzile said. “Disruptions in production, even sometimes for short periods of time, are not necessarily good for growth.’
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