Strikes affect investor confidence

The consequences of strike action was mentioned at the recent Investing in African Mining Indaba in Cape Town.

Along with unreliable power supply and a mining code that has been under review for six years, strike action has put a major dent in investor confidence.

To expand, investors "want certainty, they want a clear regulatory environment, and they want an environment in which companies are not held hostage by unreasonable demands and cost escalations," said Sibanye Gold CEO Neal Froneman, the biggest producer of bullion in South Africa, "They can't operate or invest in the current environment."

Violent strikes such as those of Marikana in 2012, and the five month long platinum strike of 2014, are prime examples of strikes that have shaken South Africa’s economy along with investor confidence. One can only hope lessons will be learned.

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