Move over conflict diamonds. Gold and platinum are now ripe for potential consumer backlashes given the number of people who die each year trying to mine them. Luxury today has to have among its attributes, the affirmation of ethical and environmentally friendly practices as well as making some sort of positive contribution to human society. Luxury products run the other way when they smell cigarette smoke or see celebrities in fur coats. They run not because they particularly care. They run because the consumer cares.

Already, environment concerns and strong NGO campaigns about ‘dirty gold’, have put the gold industry on the defensive. To have them now say that gold also kills miners like flies wouldn’t really be a good thing, would it?

pie chart

Source: Department of Minerals and Energy (Figures provisional)

* Includes coal, iron ore, chrome, copper, sand, clay, granite, titanium.

We know that conflict diamonds even at their peak, were estimated to be less than 4% of the global diamond supply, but the effects of the media backlash continue to be felt across the pipeline. Imagine what could happen if consumers became aware that South Africa, the leading producer of gold and platinum, has some of the world’s worst mine safety records.

This year alone, 180 people have died in South Africa’s mines. Between January and September mining claimed the lives of 148 people according to the department of minerals and energy. More than 75% of those fatalities occurred at platinum (39 deaths) and gold (78 deaths) mines combined. Diamond mines fared slightly better in comparison, accounting for 5% or 7 fatalities.

True, South Africa’s mines are among the deepest on earth, one pushing some 4km below the surface. Booming commodity prices are forcing them even deeper, making them even more vulnerable to potentially lethal seismic and rock fall events. The commodities market doesn’t care and gold will still sell as an investment safe haven. But when it comes to luxury and the public statement it makes…

Incensed by the high death toll, South Africa’s National Union of Mineworkers has declared it will go on a one-day strike on December 4. The strike will coincide with a health and safety audit at all 700 mines in the country following an order from President Thabo Mbeki.

With all the negative publicity surrounding the South African mining industry, De Beers was quick to point out recently that its Finsch mine has “operated without a single fatality for the past 11 years.” De Beers knows the cost of negative publicity of the sort that mine deaths generate. The gold and platinum mines had better wake up.