Lonmin could retrench 6,000 during restructuring
CEO Ben Magara said the short-term pain was necessary to ensure long-term viability.
JOHANNESBURG - Platinum mining company Lonmin said an estimated 6,000 workers could lose their jobs due to a new restructuring plan, which includes closing down some of its North West shafts.
Lonmin said the platinum price had fallen by 14 percent since May and it was embarking on the restructuring process to safeguard its long-term investments.
The company said the jobs at risk included those of contractors.
Some workers had already opted for a retirement package.
It said the closure of shafts and placement of others under maintenance was aimed at making the business more sustainable.
The company's CEO Ben Magara said in a statement that the short-term pain was necessary to ensure long-term viability.
Lonmin employs around 30,000 workers, many of whom belong to the Association of Mineworkers and Construction Union who recently secured historic wage increases after a five-month long strike.