Friday, September 18, 2015

Mining Job Cuts Haunt African Leaders Ahead of Elections


 
Reuters, 18/09 14:41 CET

By Olivia Kumwenda-Mtambo

JOHANNESBURG (Reuters) – When Canada’s Barrick Gold said it would close its copper mine in Zambia if the government imposed a sharp hike in mineral royalties, President Edgar Lungu had little choice but to back down to save valuable jobs that keep the country going.

Mining accounts for over 70 percent of export earnings and employs over 60,000 in the landlocked southern African economy. With his Patriotic Front(PF) facing an election next year, Lungu, promised no jobs would be lost and agreed to lower royalties than the government wanted.

Barrick kept the jobs and the mine open in a case that highlighted the challenges for African governments in dealing with powerful international miners suffering from a global commodities slump. Governments in South Africa and the Democratic Republic of Congo (DRC) are also grappling with thousands of mining job cuts ahead of elections. 

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Source: Euronews 

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