The Rand has weakened against the US Dollar in morning trading as the market reacts to yesterday’s bout of violence at one of South Africa’s biggest Platinum mines.
At least thirteen workers were wounded by rubber bullets and machetes after rival trade unions clashed with security forces on Monday. The violence took place at Anglo America’s Siphumelele shaft and has led to all of Anglo America operations being closed on Tuesday as workers stayed away fearful of more clashes.
The company has declared the stoppage of work as illegal.
Up to 10,000 angry workers gathered in Rustenburg to protest at the company’s interference in trade union disputes. Anglo American labour leader Evans Ramokga said; “Nobody went to work today. Nobody is pleased with what happened, the workers want an explanation from management as to why they interfere in union issues. Unions should fight their own battles.”
South African police said that the bloodshed was provoked by a dispute between the established Union of mineworkers and the growing Association for Mineworkers and Construction Union over access to a mine office. In response security officers fired rubber bullets in a bid to disperse the crowd in which several protestors were armed with machetes.
Last year labour unrest led to the deadliest single security incident in South Africa since the end of the Apartheid in 1994 when 34 miners were shot dead by police.
Mining giant Anglo American, sparked worker anger after announcing a drastic cost-cutting plan that has risked sparking more unrest. It plans to cut 14,000 jobs, mothball two mines and sell another in a bid to right its ailing business.
The violence has caused worries over the stability of South Africa’s key industry and we can expect the currency to take a pretty big hit due to the halt in production and the rising concern that the South African economy could see a repeat of last year’s worker violence.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0837
The South African Rand to US Dollar exchange rate is currently trading at 0.1117
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0721
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1081
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1322
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1131
The South African Rand to Emirati Dirham exchange rate is currently trading at 0.4105
The South African Rand to Swiss Franc is currently trading at 0.1032
The South African Rand to Japanese Yen is currently trading at 10.4557
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