The South African government has agreed  with mining companies on a plan to save thousands of mining jobs that were scheduled for downsizing as the player in the industry, that is plagued by falling commodity prices on the international markets, shut down underperforming mines.

Mining contributes about 7 percent to Africa’s second largest economy, but has come under pressure in recent years due to falling commodity prices on the international markets, rising cost of operations occasioned by frequent power cuts and protracted labor unrest.

The country is the world largest producer of platinum and manganese and also extracts huge amounts of gold and other metals.

According to The Irish Times, the South African government has come up with a series of interventions that include boosting the platinum sector by promoting the metal as a central bank reserve asset. The state has also committed to establishing a fund to assist mining companies in retaining retrenched mineworkers.

An estimated 23,000 South African miners have lost their jobs since April as falling metal prices and lower demand for commodities globally hurt earning for local mining companies, according to South Africa’s Economic Development Ministry.

Mining companies chief executives were facing a possible backlash from government and miners over their plans to cut thousands of jobs at a time when the second largest economy on the continent is struggling with one of its lowest economic growth since a 2009 recession.

On their part, companies, including Glencore, Kumba Iron Ore,  Lonmin and Anglo American, have agreed to delay lay-offs and sell distressed mining assets instead of closing them to save jobs under these operations.

The country’s four major mining labor unions, which have a very strong membership, have agreed to increase productivity.

Mining Minister, Ngoako Ramatlhodi, told a press briefing that about 19,000 miners were facing imminent lay-offs before the government came up with this plan.

Ramatlhodi said the government intended to start negotiations with the South African Reserve Bank and the new BRICS development bank for emerging markets to consider using platinum as one of its reserves tools.

“I hope we can reach a point where it says ‘I promise to pay the bearer in platinum equivalent’ to add to the basket, so we are looking at internal promotion,” The Irish Times Quoted him saying at a presser