Determinants of viability in junior mining companies in the Witbank region of South Africa

An exploratory survey was undertaken in order to explore the underlying causes of bankruptcy in junior mining companies operating in the Witbank region of Mpumalanga Province based on data gathered from 120 highly experienced employees of junior mining companies operating at Witbank. Perception on barriers to produc- tivity in junior mines was measured based on a scale introduced by Henisz, Dorobantu and Nartey (2014). Data was gathered on 24 socioeconomic variables. Data was anal- ysed by performing logit analysis. The key finding of study was that 74.17% of respondents believed that their mines were profitable and productive. Productivity of mines was found to be undermined high cost of transport [OR = 4.51; P = 0.003; 95% CI = (2.26, 7.58)], low demand for mine products [OR = 2.65; P = 0.009; 95% CI = (1.86, 6.14)] and inability to improve the public images of junior mining companies [OR = 2.53; P = 0.015; 95% CI = (1.80, 5.76)]. modities are vital to stay in business. The authors have pointed out that the demand for commodities in China has reduced. Following the falling demand for commodities in China, junior mining companies have suffered a huge loss in revenue. There is no hope of this situation changing at least in the near future, hence the need for junior miners to look at strategies of cutting costs. The study aims to assess the degree of relevance and potential benefit of various cost cutting strategies used by junior mining companies operating at the Witbank region of Mpumalanga Province. The study was conducted in an attempt to shade light on the worsening economic plight of junior mines operating in the Witbank region. The region is fraught with massive unemployment, lack of infrastructure and environmental pollution arising from mining activities. Junior mines provide employment opportunities to graduates of high schools and educational institutions operating in the region. There is a significant lack of vocational and specialist skills that among the youth. Employment opportunities are scarce. The South African Small Enterprises Development Agency (SEDA, 2016) provides assistance to novice entrepreneurs by way of rolling out training and mentorship programmes to various economic sectors including the mining sector. Annual reports issued by the South African Chamber of Mines (2016) and Statistics South Africa (2016) indicate that the Witbank region is characterised by unemployment, environmental pollution and lack of direct investment. Experiential and vocational training opportunities are scarce in the Witbank region. The problem of environmental pollution arising from industrial and mining activities undermine the overall health condition of the population living in and around Witbank. Workplace training opportunities could be used for improving the degree of skills possessed by young people. The study conducted by Achrya, Lochstoer and Ramadorai (2013) has shown that workplace training has numerous benefits to junior mines. Junior mines could use workplace training as a means to improve the degree of tailor-made vocational and artisan skills among workers who lack such skills at the workplace. Workplace training must be relevant to the KPAs and KPIs of employees in order to be effective. This is because any workplace training must be of high quality and relevance to the operations that are carried out at the workplace. Workplace training entails dedication and the availability of resources such as training budget, money for trainers and venues