Minister of Finance Trevor Manuel’s support for the International Monetary Fund’s (IMF) proposal to sell gold reserves is ”worrisome”, the National Union of Mineworkers said on Thursday.
The union also said it supports Minister of Minerals and Energy Phumzile Mlambo-Ngcuka’s opposition to the proposal.
”The concerns raised by the minister are shared by our union,” spokesperson Gwede Mantashe said in a statement.
”In our view, the action of the IMF, instead of fighting debt, entrenches poverty.”
He said gold’s value will decrease considerably if the IMF sells its gold reserves.
This will, in the end, lead to job losses in the gold-mining industry and will force thousands of mineworkers into poverty.
”What the IMF is proposing is a solution to a crisis created by the G7 [Group of Seven] countries themselves, countries that continue consuming world resources unabated, which is a recipe for disaster, hunger and disease.
”It would be wise for other alternatives aimed at eradicating debt to be looked at, instead of this one that will push the poor further into the abyss of poverty.”
The IMF said last week that it will study the use of its gold reserves to help finance debt relief for some of the world’s poorest countries.
The announcement was made during a meeting of the G7 industrialised nations in London. — Sapa