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Underperformance by ANC in upcoming election may spell trouble for mines, BMI cautions

The South African government’s vocal support for labour unions, particularly in wage negotiations, will increase owing to a rising challenge from the country’s political left, research firm BMI said on Tuesday. In an analysis piece entitled ‘Global Mining: Political Flashpoints 2016 Revisted’ the Fitch Group company stated that, with President Jacob Zuma’s support within the governing party, the African National Congress (ANC) weakening, a poor result for the party in municipal elections, which are scheduled for August 3, could act as a “watershed moment”.