Johannesburg: The South African mining sector has said the strike by transport utility Transnet is costing the country, businesses and the mining sector billions of rands, damaging an already fragile economy.
The Minerals Council South Africa on Thursday said the mining sector accounts for more than 80 per cent of Transnet’s rail business and 50 per cent of the group’s income. They added that the continuation of the strike will further damage the fragile economy.
The employees from South African state-owned company Transnet have been on strike for more than a week affecting exports tremendously, Xinhua news agency reported.
“The damage caused by the strike is not just the immediate impact but the longer-term consequences, which will have a ripple effect on business and broader society. The long-term reputational damage to South Africa as a reliable supplier to global markets must be considered by all parties,” said Minerals Council South Africa spokesperson Allan Seccombe.
He said that on average, South Africa exports about 476,000 tonne of bulk minerals a day worth $83 million, however, it is estimated that just 120,000 tonne of minerals worth $15 million are being exported daily due to the strike. He added that major mineral export harbours are operating at between 12 per cent and 30 per cent of their daily averages.
The steel makers, farmers, and freight industry have said the strike is affecting their business and will damage the economy which is recovering from the Covid-19 pandemic.
Transnet is the largest and most crucial part of the freight logistics chain that delivers goods to each and every South African. As a state-owned company, Transnet is made up of operating divisions, including freight rail, rail engineering, national ports, port terminals, pipelines and property.
–IANS
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