(Bloomberg) -- South Africa's mining industry could lose more than 45,000 jobs during a prolonged nationwide lockdown to contain the coronavirus, according to the country's biggest producers.
President Cyril Ramaphosa has extended a 21-day lockdown by two weeks, keeping most mines mothballed to the end of this month. A prolonged shutdown could curb output by 15%, threatening the viability of marginal operations, the Minerals Council South Africa said.
“A longer lockdown period, with lower production and no mechanisms in place to support the industry, could put 10% of the workforce at risk -- and this excludes jobs in supplier industries,” said the Minerals Council, which represents major producers.
While the lockdown exempted more mechanized operations, such as the open-cast iron ore pit run by Anglo American Plc, it's hurting deeper, labor-intensive gold and platinum mines. Ramaphosa's government will meet again on Monday to discuss ways to reboot a battered economy, which already has one of the world's highest unemployment rates.
Moreover, producers aren't prepared to pay for wages beyond the original 21-day shutdown, which was due to end this week, said Johan Theron, a spokesman for Impala Platinum Holdings Ltd. After that, workers will have to make “alternative arrangements,” such as approaching government agencies for assistance, he said.
While the companies had received government permission to resume partial operations at some mines, police have blocked workers from returning. More than 450,000 mineworkers were sent home when the lockdown started.
“The sooner the mines are allowed to start, the more operations will re-start,” said Theron. “The longer it drags on, the higher the risk that some operations won't be able to resume.”
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