South African Union Expects Gold Miners To Lock Out Workers
News: South African labour union Solidarity has stated that South African gold producers are planning to lock out employees after a final wage offer was rejected by the unions, Mineweb reports. T he union stated that the Chamber of Mines had cancelled a meeting with labour representatives and that an announcement would be made shortly. A negotiator for the Chamber of Mines stated that gold miners may decide to lock out worke rs if the dispute cannot be resolved.
BMI View: We expect to see a gradual decline in South Africa's gold production over the coming years as weak gold prices, rising cash costs and labour unrest put pressure on the industry. South Africa's share of global output will decline as we forecast annual production to decrease at an average rate of 0.9% y-o-y between 2013 and 2017, reaching 5.62moz (mn ounces). Recently the country's gold production was overtaken by Peru, leaving South Africa as the world's sixth largest producer.