New wave of strikes may cripple S.Africa's mines
New wave of strikes may cripple S.Africa's mines
A spokeswoman for Amplats, a unit of London-listed Anglo American, said an unspecified number of employees at its Khomanani, Thembelani and Tumela mines, in the heart of South Africa's platinum belt, had refused to go underground.
Only Khomanani is among the mines slated for indefinite closure or sale by the company, so the wildcat action suggests militant labor activists are making good their threat to bring sympathy strikes to other shafts.
The protests, which were expected after Anglo American unveiled its restructuring plans, combined with strong government objections to job cuts show how difficult it will be for the mining giant to push through changes critical for its recovery and that of its loss-making unit.
"The restructuring itself was fairly ambitious, it was probably not as much as some people wanted and more than others expected," analyst Jeff Largey at Macquarie in London said.
"Now it comes down to execution risk and the way things are looking right now, it is going to be more challenging than Anglo thought."
An Amplats labor leader based in the platinum belt city of Rustenburg earlier told Reuters that workers at several mines had refused to go underground overnight to protest against the company's restructuring plans.
The mining communities and shantytowns around Rustenburg, 120 kms (70 miles) northwest of Johannesburg, have been a flashpoint of labor and social unrest. Local media reported workers would be meeting later to plot wider strike action.
Amplats' share price slid over 6 percent while Anglo American's fell over 4 percent in early trade yesterday, dragging Britain's top share index down.
South Africa sits on about 80 percent of the known reserves of platinum, used to build emissions-capping catalytic converters in automobiles, but weak demand has depressed the price. It rallied to three-month highs on Tuesday because of supply concerns triggered by the Amplats proposals.
The planned retrenchments and closures, which Amplats says are needed to restore profits, risk provoking a repeat of the violent wildcat strikes in the gold and platinum sectors that resulted in more than 50 deaths last year.
They have also stirred anger from the government and ruling African National Congress (ANC) as they grapple with a jobless rate of over 25 percent and growing social discontent ahead of next year's general elections.
Mines minister Susan Shabangu lashed out at Amplats again yesterday, calling the company and its chief executive Chris Griffith "arrogant."
"Amplats decided to undermine all of us. Amplats continues to be arrogant ... They've been playing games with us," she said during an interview with SAFM radio.
"Listen to this, the arrogance of Chris. He said in his statement he's going to talk to labor. And he's not going to talk to government? He's not going to talk to us as the regulator," she said.
Anglo, which says its plan is critical to creating a sustainable platinum business, said in a statement that it took its regulatory and social responsibilities seriously.
"We will be continuing to consult with all our stakeholders on our proposals," the company said.
Adding to Anglo's woes, Kumba Iron Ore, also part of the Anglo stable, said on Wednesday that its full-year profit is likely to have fallen by about a third, hit by lower export prices and an illegal strike at its main mine.
Fueled by glaring income disparities within the industry and the wider economy, the labour unrest is also rooted in a bloody turf war between the militant newcomer Association of Mineworkers and Construction Union (AMCU) and the dominant National Union of Mineworkers (NUM).
A fresh wave of strike action on South Africa's restive platinum belt and elsewhere could be crippling to an industry battling with soaring wage and power costs and aging mines that are the deepest in the world.
"Everyone expected that when (Amplats) came through there would be some disruption, some protest. It is, though, somewhat surprising to see how far the government in particular has swung in terms of standing with the masses, playing up the popular rhetoric," Macquarie's Largey said.
Strikes would also further erode investor confidence in Africa's largest economy. The South African rand weakened against the dollar and investors pushed bonds lower yesterday because of the brewing labor unrest.
I could have done a lot more for Pakistan but was prevented by Musharraf, says Dr. A.Q. Khan
- India and Pakistan could live together in peace and harmony 'if the Kashmir problem is solved amicably,' says Pakistan's top nuclear scientist
- The safety and security system put in place by Pakistan’s Strategic Plans Division is 'failsafe'
DUBAI: “All the Western countries are against any Muslim country having a nuclear capacity,” said Pakistan’s former nuclear scientist — popularly known as the ‘father’ of Pakistan’s atomic bomb — in an exclusive interview with Arab News.
“Never do you hear a word said about Israel’s nuclear program,” he said.
International community keeps raising concerns over the safety of the country’s nuclear arsenal.
“The safety and security system which has been put in place by the SPD (Strategic Plans Division) is failsafe,” said Dr. Khan, in a reply to questions sent to him by email.
Dr. Khan stressed that Pakistan has “no evil designs against any country” and that the country’s nukes are purely for “self-defense” and deterrence, adding that in case of an aggression “there will be no concessions from Pakistan.”
Advocating Pakistan’s nuclear ambition, Dr. Khan said, “It has definitely protected Pakistan, not only from an aggressive India, but also from (foreign) adventurists.”
“We all know what happened to non-nuclear Pakistan in 1971. Since the early 1980s the world was aware that we had a nuclear program and neither India nor any other country has dared to touch us ... I gave Pakistan the capability of hitting back if it was attacked making any misadventure on the part of India fatal for both countries,” he said.
The two countries could live together in peace and harmony “if the Kashmir problem is solved amicably,” he said.
As Pakistan heads toward the general election next month (July 25), Dr. Khan said that he has no political plans.
Dr. Khan dissolved his political party, Tahreek-e-Tahaffuz-e-Pakistan (Movement for the Protection of Pakistan), after the 2013 election. “The formation of that party was at the insistence of many people and I gave them the opportunity to try. However, there were no good results.”
“Politics in Pakistan requires rolling banknotes,” he said.
On Wednesday, the Election Commission of Pakistan made public the assets of main electoral candidates in the 2018 elections, figures that have shown rich political leaders living lavish lifestyle.
Pakistan problems are caused by the “corrupt system and political inabilities” where leaders had most of their wealth stashed abroad and “little interest in safeguarding national interests,” Dr. Khan said.
“See how Gen. Musharraf, a military dictator, sold this country’s sovereignty to the West at a simple phone call from the US. For that, we have paid, and are still paying, a very heavy price.”
Dr. Khan alleged that he was sacked by Musharraf on a US whim at a time when he could have done much more for Pakistan.
“… Read what Chaudhry Shujaat Husain has said about that episode in his autobiography.” He said Musharraf “neutralized” him (Dr. A.Q. Khan) because President Bush wanted him to do so. “The country suffered because of it.”
In January 2004, Dr. Khan was summoned by the government for a debriefing on his alleged role in nuclear weapons technology proliferation after the US shared evidence with Pakistan. He confessed to the charges a month later and was put under official house arrest. He was released as a free man on Feb. 6, 2009, by the Islamabad High Court (IHC).
“I could have done a lot more for Pakistan in the years after my retirement but was prevented from doing so by him (Musharraf). Now he himself is in disgrace while the nation still honors me,” said the 83-year old former nuclear physicist, recalling his sacking.
Dr. Khan, who visited North Korea before under a missile program mission by Pakistan, believes that the recent Trump-Kim summit in Singapore will not definitely lead to Pyongyang’s denuclearization. “North Koreans are very pragmatic,” he said.
“As long as US troops are in Japan and South Korea, North Korea will not freeze or abandon its nuclear program.”
Both the US and North Korea are trying to get the best out of the situation — President Trump looking for a Nobel Prize for Peace and the North Korean President recognition as a world leader, he said.