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How mine retrenchments affect Sun City’s profits


Retrenchments in mines surrounding the Sun City resort in the North West have a "grave" impact on the establishment‚ parliament’s portfolio committee on economic development was told during oversight visits.

"On day one of its week-long oversight today‚ the committee met with Sun City management to discuss ownership‚ management‚ job creation‚ enterprise development‚ the number of entrepreneurs and black-owned bed and breakfast establishments and guest houses in the area‚" the committee said in a statement.

The Palace at Sun City. Picture: SUPPLIED

"The committee heard that Sun City is highly dependent on disposable income in communities living in the surrounding area‚ and the looming threat of retrenchments at mines such as the Impala Platinum mine‚ which retrenched about 2‚000 miners in 2017‚ poses a big risk for the resort."

According to the committee‚ Sun City currently faces a revenue shortage of R100m and bookings are about 30% lower compared with the previous financial year.

"This downward performance poses a major threat to the staff of around 10‚000 people‚ including service providers. The resort itself has a staff complement of around 4‚200 permanent staff‚ 1‚300 casual staff employed through labour brokers and 1‚200 casual staff employed by Sun International."

The resort also faces a number of other challenges related to mining in the Pilanesberg area close to the resort‚ roadworks en route to the resort that have been ongoing since 2010‚ and the issue of land-use management between traditional authorities‚ the committee said.

However‚ despite these challenges‚ the committee said it was told that the resort has given a lot of attention to developing local entrepreneurs.

"About 70% of the resort’s construction and maintenance budget is spent on local broad-based BEE [BBBEE] companies in the area‚ while the resort has also given business to two black‚ female-owned companies."



Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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