The objective of the study was to investigate downscaling in South Africa’sudmining industry and the manner in which it was managed with special reference toudthe gold mining sector. In this regard the study involved literature review, dataudand information gathering, participating in tripartite stakeholder forums andudsoliciting opinions from several role players in the industry. Driefontein GoldudMine, one of the largest gold mines in the world, was used as a case study toudexamine management of downscaling in the gold mining industry.udLiterature investigation showed that South Africa’s mining industry has alwaysudbeen cyclical and labour was vital for its development. A dichotomy was revealedudin the study in that the early years of modern mining were besieged with audcontinuous shortage of labour; in recent years the opposite is true as the industryudis continuously battling with downscaling and shedding of jobs. Historical dataudshows that the gold mining industry has gone through three periods: the StableudPeriod (Period 1: 1960-1975); Expansion Period (Period 2: 1976-1987); andudDownscaling or Crisis Period (Period 3: 1988-2004). Sufficient evidence wasudpresented to show that the downscaling period was triggered by a combination ofudpolitical instability of the 1980s and economic factors such as declining goldudgrades and depressed gold prices.udStakeholders followed a three-phased approach to address negative impactsudassociated with downscaling. The approach involved holding two tripartiteudsummits; Gold Mining Summit (Phase 1) and Mining Summit (Phase 2) andudincorporating recommendations emanating from the summits into the legislativeudprocess (Phase 3). At mine level, mines such as Driefontein managed downscalingudthrough a number of initiatives including productivity improvement, restructuringudand providing redundant employees with the option of taking extended leave.udEconomic factors, such as gold grades and ore reserves, suggest that downscalingudwill continue well into the foreseeable future and will exacerbate the existingudnegative environmental and socio-economic legacies. It is against this backgroundud3udthat international experiences on the management of downscaling wereudinvestigated. The study concludes by proposing recommendations and a newudstrategy to manage downscaling in South Africa’s gold mining industry. Theudstrategy proposes a number of measures that need to be put in place at national,udlocal community and mine levels.
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