This paper examines the economy-wide impact of increasing wages by an average of 117 per cent
for the majority of mineworkers in the South African mining sector. This is in line with the demands
by the mineworkers, particularly in the platinum and gold sectors, which saw them embark on major
strike action in 2012, 2014 and also eminent in 2015 to demand a minimum wage of R12500. 2012
and 2014 were crises years for the South African mining industry. The incidents at Marikana and the
subsequent strike action which ensued over wage disputes, will forever be engraved in the
memories of many South Africans, not only for the tragic loss of 44 lives on that fateful day of 16
August 2012 , but also because they marked a turning point for South Africa's mining industry and
raised critical questions of whether the mining charter was being complied with, what a minimum
wage is or should be and also whether mining companies are in a position to afford to meet the
demands of the mineworkers. Computable general equilibrium modelling (CGE) is the methodology
used and mining sector wages are shocked by 117 per cent; which is the average percentage
increase in wages demanded by the majority of mine workers earning between R6001 and R8000 to
evaluate the overall economic impact both in the short run and in the long run. An Upgem14 model
of the University of Pretoria is used which comprises of 14 sectors and 14 industries of the South
African economy.