Lonmin job cuts
Lonmin says more than 12,000 jobs at risk over next three years
Lonmin, the world’s third biggest platinum producer, has faced the combined pressures of low platinum prices and challenges of operating in South Africa.
In October, the platinum miner announced plans to cut over 1,000 jobs due to persistently low commodity prices and rising costs.
The mining giant spent almost R300 million in the 2016 financial year on social and labour projects.
Joseph Mathunjwa says he’s concerned mine bosses are placing shareholder interests over employee interests.
There’s been some confusion over the process after Amcu said only around 75 Lonmin jobs would be lost.
Last year, Lonmin mine announced that 6,693 of its employees would be retrenched over two months.
Lonmin aid labour costs fell R194 million in the last three months of 2015 after it shed 5,077 jobs.
The company is also closing or mothballing several mine shafts and cutting 6,000 jobs.
Lonmin has asked investors for more money and warned that if it can’t raise the necessary capital.
The ANC says mining companies must work with govt and review its plans before cutting thousands of jobs.
Following an announcement of massive job cuts in the platinum sector, gold sector unions have been warned.
CEO Ben Magara said the short-term pain was necessary to ensure long-term viability.
The mining company says it’s only looking at voluntary retrenchments at this stage, to reduce costs.
Lonmin is said to be planning job cuts in the mining sector in an attempt to withstand low platinum prices.
It is alleged Lonmin transferred money to Bermuda to avoid paying taxes.
The company says its immediate aim is to ramp up production after a crippling five month strike.
Despite reports of Lonmin cutting 5,700 positions, Amcu says it’s not received word from the company.
According to a report, the platinum producers aims to cut around 5,700 jobs.
The plan would see the closure of four to six of the company's 11 shafts.