[miningmx.com] – THE eight week long strike in the platinum sector would shave a quarter of a percent of economic growth, said Reuters citing economist Mike Schussler in an article republished on BDLive.
Schussler said that about R9bn lost in platinum revenues would be taken out of South Africa’s current account as the revenue was mostly exports. “Roughly speaking, if you look at our GDP, which is R3.6 trillion, then that R9bn is about a quarter of a percent off economic growth already,” said Schussler.
The impact to the current account could not come at a worse time as the South African government was heavily spending on infrastructure projects. It recently ordered just over 1,000 trains from companies such as General Electric and China South Rail (CSR) Zhuzhou at a cost of R50bn. “There will be huge pressure on the current account from the government’s infrastructure programme. So this strike could hardly come at a worse time,” said Schussler.
The Association of Mineworkers & Construction Union (AMCU) on January 23 called out between 70,000 to 80,000 of its members in the platinum sector after failing to secure a R12,500 per month basic salary – a demand the platinum sector said was unaffordable.
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