Leading platinum producer, Lonmin, is adamant about shedding jobs as it awaits decision on its planned sale of the company to the mining giant, Sibanye-Stillwater.

The Reserve Bank of South Africa has granted Sibanye greenlight to go ahead with the acquisition as required in accordance with the Exchange Control Regulations, with respect to the proposed acquisition announced on 14 December 2017.

The Proposed Transaction remains scheduled for closure during the second calendar half of 2018 and subject to the passing of the required resolutions by Lonmin and Sibanye-Stillwater shareholders and the approvals of the competition authorities of the United Kingdom and South Africa.

The mining company made mention of shedding about 12,600 jobs in its second quarter 2018 production report released earlier this week.

The company reports that the projected job losses are a result of, among others, weakening platinum prices and currency movements which continue to create a difficult operating environment.

“Section 189 process commenced, impacting 1,993 staff, with a net headcount reduction of 1,504 employees and contractors, of the 3,700 jobs identified for this year; (12,600 jobs could potentially be impacted over the next three years),” said Lonmin through a SENS statement.

Amid impending job losses, the company is celebrating a third consecutive fatality free quarter, which takes Lonmin to 10 months of being fatality free.

The Association of Mineworkers and Construction Union (AMCU) has been waging a relentless war to save jobs and lives at the platinum belt.

AMCU has not taken kindly to the proposed selling, warning that it was threat to jobs in the sector, considering Sibanye-Stillwater’s record of prioritising mechanisation in place of saving jobs.

“With an unemployment rate of 27.7%, this constitutes a nightmare for the workers of this country,” AMCU warned in a statement.

 

15 May 2018 by Trust Matsilele

 

*image taken from Lillyloompa.wordpress