JOHANNESBURG: South Africa's mining sector is in "trouble" as it struggles with widespread job losses and lower commodity prices, Minister of Economic Development Ebrahim Patel said on Wednesday.
President Jacob Zuma's government was due to hold an urgent meeting with mining houses and trade unions later in the day after companies announced they would have to retrench workers to counter high costs.
"The mining industry is in trouble," Patel said on Talk Radio 702, citing the recent downturn in the metal industry and subdued demand from China.
The government would boost the agriculture, tourism and manufacturing sectors to diversify Africa's most developed economy from a reliance on mining, Patel said, adding that the private sector could more do to create jobs.
In addition to sinking commodity prices, South Africa's mining industry is also battling rising costs and labour unrest as workers demand higher wages.
On Tuesday, the mines minister ordered Glencore to suspend all operations at a coal mine because of the way it planned to carry out retrenchments.
Glencore announced last month it would cut 380 jobs at Optimum and shut part of the mine due to lower coal prices.
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