Pamphlet 22 Mining Industry labour reduction income escalation;
Let us have a look at the Gold Mining Industry labour trends and the motivations for change?
Chart 1
Until this morning, I interpreted the reduction of labour as depicted on the chart 1, (l to m 1985 to 2000) as the mining industries decision to mechanise, to remove the need for too many black workers, while the labour complement reduces by 37,5%, the value of the output between 1985 to 2000, according to a mining report, increased by more than 250%.
I assumed that mechanisation, resulted in improved production, and thus the increased value, how else could output just increase by 250% in fifteen years with the mining report not identifying the real reason.
What the mining report does not show, is that the production dropped by 40% during this period, production drops by 40% and value increases by 250%, what happened to the Gold Price?
** The Gold Price in USD reduces from 360,65 to 279.27, a 22,56 percent reduction, yet the 250% (plus a lot more) increase in value as reported in the mine report, does take place, in the interest of the mining shareholders.
** The Gold Price in ZAR, South African rands, moves from R 533,76 to R 1 940,93 a 379,30 percent increase, confirming the mining industry claim in the report.
What is the cause of this phenomenal increase, an increase when the world gold price reduces, yet still allows the mining industry shareholders to benefit, at no abnormal cost to the investors, very simply the manipulation of the Rand / USD exchange rate?
The increased profit margins, is directly paid for by the South African citizens, through our large imported product requirements, at the depreciated rand value.
Cedric de la Harpe
Cedric is available to consult with all interested structures and communities, please email him of safari@tasteofafric.co.za
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Cedric and Nettie de la Harpe