Ancyl Accuses Mining Companies Of Exploitation, Threatens Shutdown Over Retrenchments

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ANCYL Accuses Mining Companies of Exploitation, Threatens Shutdown Over RetrenchmentsJanuary 25, African National Congress Youth League (ANCYL)The African National Congress Youth League (ANCYL) has issued a stern warning to mining companies across South Africa, threatening to shut down all mining operations if retrenchments in the sector are not immediately halted.

This declaration was made during a picket held outside the Minerals Council South Africa in Rosebank, Johannesburg, on Friday.

The protest, which was staged in collaboration with the National Union of Mineworkers (NUM) youth structure, aimed to address ongoing retrenchments and the perceived exploitation of South Africa's mineral resources by mining companies.Mining Industry Retrenchments Under FireThe picket comes amidst growing concerns over job losses in South Africa's mining sector, with several mining companies announcing plans to reduce their workforce.

According to the ANCYL, these retrenchments disproportionately affect young workers and exacerbate the country's already dire unemployment rate, which currently stands at over 40% for youth, as reported by the Quarterly Labour Force Survey.NUM's Noel Phahlane highlighted the failure of mining companies to adhere to their social and labour plans, which are legal commitments made when they receive mining licenses.

Most of these mining houses are not fulfilling their promises to develop and upskill employees.

If they plan to retrench, they must put measures in place to reskill workers before cutting jobs," said Phahlane.

He further stressed the detrimental impact of retrenchments on low-income communities reliant on the mining sector.ANCYL's Stance : Economic Freedom and AccountabilityANCYL President Collen Malatji delivered a fiery speech during the picket, accusing mining companies of exploiting South Africa's mineral wealth for the benefit of a wealthy minority while neglecting the communities in which they operate.

The youth of this country gave us a mandate for economic freedom now, not later.

We are no longer talking about the future; we are talking about now.

If the mines cannot explain who they benefit, we will wake up and close all their gates," said Malatji.Malatji also accused mine owners of employing illegal foreign workers to evade taxes and labour regulations.

The real zama-zamas are the owners and shareholders of these mines.

They abandon the mines to avoid paying taxes and meeting their obligations, only to return through illegal operations," he said.Memorandum of DemandsThe ANCYL and NUM youth structure submitted a memorandum of demands to the Minerals Council South Africa, urging immediate action to address retrenchments, provide fair wages, and invest in community development.

The memorandum also called for increased transparency regarding the social and labour commitments made by mining companies.Mzila Mthenjane, spokesperson for the Minerals Council, received the memorandum and pledged to address the concerns raised within 14 days.

I recognise the importance of the issues raised today.

Job losses, economic growth, and the future of mining are concerns for everyone.

We will work with youth leaders and other stakeholders to find sustainable solutions," said Mthenjane.Mining Companies and Community NeglectThe ANCYL criticised mining companies for failing to invest adequately in the communities where they operate.

According to ANCYL spokesperson Zama Khanyase, mining companies have neglected their responsibility to provide bursaries, create employment opportunities, and address health issues caused by mining operations.

Communities are suffering while mining companies profit from their resources.

This is unacceptable," said Khanyase.The Department of Mineral Resources and Energy recently reported a decline in mining-related deaths, a development praised by the sector.

However, this improvement in worker safety comes at a time when the industry is grappling with financial challenges, declining production, and the rising issue of illegal mining.Illegal Mining : A Growing CrisisIllegal mining, or zama-zama operations, continues to plague the South African mining industry.

While these activities are often associated with undocumented workers, Malatji argued that the root cause lies with the mine owners.

They pretend the mines are closed, but the reality is they are exploiting the system.

Illegal mining is a direct result of their greed and negligence," he said.The Department of Mineral Resources and Energy has acknowledged the need for stricter measures to combat illegal mining.

Minister Gwede Mantashe recently released data highlighting the economic contributions of the mining sector while warning of the increasing threat posed by illegal operations.The Economic and Social Impact of RetrenchmentsRetrenchments in the mining sector have far-reaching consequences, particularly in rural and mining-dependent communities.

Many workers who risk their lives underground are left with no financial security when companies shut down or reduce operations.

The ANCYL and NUM have called for government intervention to ensure that mining companies fulfil their obligations to employees and communities."The lack of adherence to social and labour plans is a violation of workers' rights.

Mining companies must be held accountable for their actions," said Phahlane.

The youth organisations have also called for stricter oversight by the Department of Mineral Resources and Energy to ensure compliance with labour regulations.Industry Response and the Way ForwardThe Minerals Council has acknowledged the concerns raised by the ANCYL and NUM youth structure.

Mthenjane emphasised the need for collaboration between the private sector, government, and civil society to address the challenges facing the mining industry.

Sustainable solutions require input from all stakeholders.

We will engage with the board, executives, and members of the Minerals Council to find a way forward," he said.The Council also noted that while retrenchments are often a last resort, they are sometimes necessary to ensure the survival of mining companies in a challenging economic environment.

However, youth leaders remain adamant that the industry must prioritise job creation and community development over profits.