Lonmin: 1 500 jobs could go

Johannesburg - A total of 1 500 workers at Lonmin's Limpopo operations could lose their jobs, the company said on Monday.

"In response to the current economic climate, it [Lonmin] has commenced a process which may lead to job losses at its Limpopo operations," the world's third-largest platinum producer said in a statement.

"At this very early stage it is estimated that approximately 1 500 permanent Lonmin permanent employees may be affected."

The company said it had sent a section 189 notice to the unions. The notice begins a 60-day consultative process between Lonmin and the unions.

Earlier this month, when releasing its results, Lonmin said it might close its Limpopo Baobab shaft.

On Friday, Lonmin said it had begun retrenching 4 000 of its employees at Marikana in Rustenburg in the North West as it intended to suspend open cast mining there. The suspension was expected to take effect from the end of the 2008 calendar year.

Solidarity and the National Union of Mineworkers said they had not received any formal notification from the company of Limpopo retrenchments by Monday afternoon.

"We are expecting it. We know it's coming. It's terrible," said Solidarity spokesperson Jaco Kleynhans.

"It is a concentrated retrenchment in one area that will affect the whole area and the whole area's economy."

He said the ripple effect of mining retrenchments had a more concentrated effect than with other sectors.

Towns were built on mines. "The mining towns are extremely reliant on the income from the mining industry." The union had estimated that each mine worker was supporting about eight dependents.

The service industry in the towns also suffered through mine job losses, as people could no longer afford to buy goods offered.

"You have a total ripple effect. It's a social crisis in those areas."

Kleynhans said the union still hoped to talk to the company about other ways to solve difficulties it faced.

He said the platinum industry was experiencing increased production costs - exacerbated by a weak rand - and a decreasing platinum price and demand.

"Those issues are short term issues... Our approach is we say you need to look at the long term.

"The lower platinum price is definitely going to rise again. The international economy will get better," said Kleyhans.

National Union of Mineworkers spokesperson Lesiba Seshoka said that since the union had not received formal notification of the Limpopo retrenchments, he wondered if it was a tactic because there was a strike going on in Limpopo.

Seshoka said more than 2 000 workers downed tools in Lebowakgomo last month over discrepancies in salaries between Lonmin workers in Limpopo and those in Rustenburg.

Last week, NUM staged a protest against job cuts at Lonmin in Rustenburg.

On Monday Seshoka said "Lonmin operates in a different fashion".

At one stage the company had said there would not be any retrenchments. Now retrenchments were an issue.

"There is a whole lot of confusion," said Seshoka.

- Sapa