JOHANNESBURG, Jan. 18 (Xinhua) -- The Association of Mineworkers and Construction Union (Amcu)'s looming strike at Sibanye-Stillwaters platinum operations comes at a time when South Africa's mining industry is facing tough times, mining and economic analysts say.
"The timing of their strike is unfortunate because it comes at a time when both the gold sector and platinum sector are going through their hardest time in the last three years," mining expert Mamkgeti Molopyane told Xinhua.
More than 12,000 Amcu members are set to down tools at Sibanye-Stillwaters platinum mines in support of fellow members who have been striking at Sibanye-Stillwaters gold operations since November after the union refused to sign a three-year wage deal, which others unions agreed to.
Molopyane said platinum producers are struggling due to dwindling platinum demands globally.
The strike will force a number of mining companies, especially in the platinum sector, to reconstruct their businesses and the process would result in the shedding of over 14,000 jobs in the next two years.
Jannie Rossouw, an economist with Wits university, said the latest strike would "encourage mining companies to increase capital intensive production instead of labor intensive production."
He further said all mining companies are at risk now and this would not be a good message to future investors.
