NEDLAC URGES ENGAGEMENT ON GOLD SALE ISSUE

The Nedlac parties of government, labour,business and community have expresssed grave concern regarding the current gold sales. The parties have called on the International Monetary Fund, and countries such as Britain and Switzerland, which are, or are considering selling some of their gold holdings, to place an embargo on such sales until they have engaged further in discussion with affected countries.

The Nedlac parties expressed their concern at the effect the recent gold sales by Britain was having on gold producing countries, especially those in Southern Africa. They said that, although they supported the IMF's programme to reduce the debt of highly indebted countries, selling gold reserves was not the appropriate way in which to implement this initiative. They noted that 30 out of the 41 countries which have been designated "Highly indebted" are either gold producers, or have a big portion of their workforce dependant on income from goldproducing countries.

Nedlac's Management Committee discussed the issue at its monthly meeting yesterday, and received a briefing from the National Union of Mineworkers' General Secretary, Gwede Mantashe. The meeting discussed the highly damaging effect the plunge in the gold price was having, not only on South Africa's gold mining towns and economy more broadly, but also on neighbouring countries such as Mozambique and Lesotho, which rely heavily on monies repatriated from their workers on South African mines.