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Lonmin loses third of annual output

Johannesburg - Platinum producer Lonmin said on Monday that it had lost a third of its annual production due to the mining strike over wages that is entering its 17th week.

The country's longest and costliest mining strike had turned violent earlier this month, with four miners killed as more employees try to report for work at the world's top platinum producers.

Lonmin had anticipated a mass return of its employees to work last week, but striking members of the main Association of Mineworkers and Construction Union (Amcu) prevented other workers from returning to the mines.

Chief executive Ben Magara said: "The first try for us remains a negotiated settlement with Amcu, our majority union.

"The strike has now entered its 17th week and we have now lost a third of our production for the whole year."

Precious metal

"We are committed to get a negotiated settlement, but the situation is becoming sufficiently desperate that we have to look at other options. If needs be, to make it possible for all those employees wishing to do so, to return to work, then we'll examine all our legal options in this regard."

Lonmin said on Thursday that it might go to court in a bid to stop the strike.

The strike has hit about 40% of global production of the precious metal used for emissions-capping catalytic converters in vehicles.

A moderate reaction of platinum prices to the supply disruption, though, indicates demand for the precious metal is weaker than many had expected.

Magara said he was surprised to see the platinum price had not moved much.

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