Perhaps mines have a valid reason not to raise the wages that their hardworking employees demand.
Lead analyst of international credit insurer Coface, Saijil Singh, said that labour costs were the biggest operating costs for mining. Labour was ranked at 40%, mining supplies and consumables at 21% and water and electricity utilities at 10%.
Singh revealed that the greatest risks businesses faced were labour unrest, volatile prices and exchange rates. Infrastructure access and capacity were also problems, including constraints on power as well as the regulatory uncertainty.
Said sigh: “Increasing costs and regulatory issues arising from the new Mining Charter and mining tax regime, which are currently under review, for instance, means that South African mining companies will need to dig deep to find ways to be profitable.”
