Fin24

Lonmin: No decisions on shafts yet

2012-09-04 18:51

Johannesburg - Platinum group Lonmin [JSE:LON] has made no decisions yet regarding the closure of some of its shafts, the company said on Tuesday.

"If the mine does not become operational soon, we will have to make some decisions," spokesperson Sue Vey said.

According to Tuesday's Business Report, Lonmin would have to resume production by Friday or shut down some of its operations.

Vey said no decisions had been taken to close shafts so far.

Last week, Lonmin told investors it was monitoring the situation in relation to its existing bank debt facilities.

"The balance of probabilities is that the impact on production... will result in covenants being breached at the next test date on September 30," it said.

"Consequently, constructive discussions are now taking place with Lonmin's banking group to address this potential situation."

Lonmin was reviewing all options available to strengthen its financial structure, including access to capital.

Workers at Lonmin's Marikana mine have been on strike for the last three weeks, demanding a salary of R12 500 a month.

On August 16, police fired on a group of protesting workers at Lonmin's Marikana mine, killing 34 and wounding 78. Another 10 people had died earlier in the week, including two policemen and two security guards.

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Comments
  • henk.vanrensburg.31 - 2012-09-04 19:24

    Close them and fire them.

      xoli.themba - 2012-09-04 21:00

      who is going 2 suffer?not only workers bt from top 2 ground.

  • wendy.schneider3 - 2012-09-04 19:30

    unions and wise crack malema will pay their salaries.

  • frank.kistler.31 - 2012-09-04 19:49

    I agree Henk....

  • robert.burnett.108 - 2012-09-04 20:42

    close them and fire the works and they will see if malema will feed them.. I think not

  • michael.a.devilliers - 2012-09-04 21:59

    Don't close the shafts, rather fire the workers and rehire more grateful ones. I hear there are some gold miners who haven't been paid in a while that would really appreciate a source of income.

      alansmartSnr - 2012-09-04 22:15

      Hoping that we have a repeat of Magereth Thatchers stand against the unions, which she, as prime minister of Britian, took a stand when the Unions striked for ludicrous demands. Chaos for 3 months - Broke the Unions and since the 1980's never a strike again. Just hope this London based company does not fold under the strikers / Government pressure and lead mining into prosperity for it's share holders (of which I may add, I am one.) Close the shafts (tempararily) and bring these thugs with their pangas and weapons down. For every one fired there are 10 to take their place and would only be to grateful to have a job at half of their current wage. Whats happend to Liazze Faire ????

  • lacrimose.wolf - 2012-09-04 22:14

    Oy Vey. Now "no decision" is turned into news

  • gretchen.adams.16 - 2012-09-04 22:32

    In S.A we have created this dangerous culture of violent protests- e.g. Housing,public servants etc. What happened at this mine was fueled by greedy political interest.The mine should fire them-it is an illegal strike and some of them are intimidating others who want to return,these people are hostile but also ignorant which is exploited by the likes of Julius \Jellybaby“ Malema for own gain.After all this if the mine gives them the 12k in a few months there will be another strike and do they consider if they get those increase which is three times what they earn now everyone else's salaries would also have to adjusted within the company for income equity-This company also need to attract investors really after this I can't see how.

  • rick.kabose - 2012-09-05 07:33

    Just remember folks , any anc voter types come asking for work in the next few months.Ask where they from and what they did before. If they from marikana,you laugh at them and slam the door in their face

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