From Ventures Africa.
Mining strikes in South Africa could hasten what appears to be a potential downgrade for South Africa by rating agency Standard & Poor’s, a London analyst said in a report in Ventures Africa.
All the “boxes are ticked” for S&P to downgrade South Africa later this year or early next year, and a deterioration in domestic security related to mining could lead to an earlier downgrade, said Peter Montalto, an analyst at Nomura Group.
A wildcat strike Tuesday closed down the Marikana mine at Lonmin, the world’s third biggest platinum miner, according to the report. Workers are striking over the killing of the organizer of the Association of Mineworkers and Construction Union, the biggest union at the mine.
Late last year, more than 34 people died when workers and police clashed at the mine over demands for salary increases. A judicial inquiry is still underway. Continued unrest and production shutdowns could be a major threat for South Africa’s economy, according to the report.
Read more at Ventures Africa.