South African gold strike threatens supply

South Africa’s gold mining industry was hit by a nationwide strike on Sunday night after talks between the National Union of Mineworkers and the chamber of mines broke down.

The miners were demanding a pay hike of 12 percent but the chamber was only willing to give a 5 percent raise in pay.

Franz Barker, a spokesperson for the chamber, said that the strike would cost the industry around R130 million per day and that South Africa, the world’s largest gold producer, will lose the same amount in export earnings.

Workers will lose wages amounting to about R60 million per day for as long as the strike goes on.

Mr. Barker said that the strike would “devastate” the gold industry, the economy, and the workers involved.

National Union of Mineworkers representative Gwede Mantashe, however, insisted that the gold mining industry could afford to pay what the workers were asking.

He also said that talks would continue until an agreement is reached. 10,000 workers from another trade union, Solidarity, are scheduled to join the striking miners on Tuesday.