Lonmin shares dive as death toll rises

2012-08-17 07:54

Cape Town - Lonmin [JSE:LON] were treating developments at the mine with the utmost seriousness, chairperson Roger Phillimore said in a statement.

"The South African Police Service have been in charge of public order and safety on the ground since the violence between competing labour factions erupted over the weekend," he said.

Lonmin said it welcomed the increased presence of the South African Police Services (SAPS) at the site of the mine, in a statement. The company said it was cooperating fully with the authorities to help restore a safe and secure environment for its employees as quickly as possible.

Lonmin shares were down 7.34%  to R83.70 at last trade.

South African police minister Nathi Mthethwa confirmed on Friday that more than 30 people were killed in a security crackdown on striking miners at Lonmin’s  Marikana platinum mine the previous day.

Asked in an interview on Talk Radio 702 whether he could confirm reports of at least 30 deaths, Mthethwa said “Yes.”

He later clarified: “I’m talking yesterday only.”

As the country reeled in shock at the deaths of Lonmin mine workers in Marikana on Thursday, the company released a statement saying its CEO was ill.

"It is with regret that the company must announce that Ian Farmer, the chief executive officer, has been diagnosed with a serious illness and is presently in hospital.

"The board, on behalf of the entire company, wishes him a full and speedy recovery. Our thoughts are with Ian and his family at this difficult time," Lonmin said in a statement.

It said the day-to-day running of the business would taken by over executive committee member Roger Phillimore.

A shootout between police and strikers at mine in Marikana in the North West ended in at least 18 people dead or wounded.

The count was made by a Sapa reporter on the scene, who said the victims were lying in the veld.

The shooting erupted when police sought to disperse armed striking workers who had gathered on a hill in the area.

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  • michael.barns.1 - 2012-08-17 09:10

    Good, for what just happened and the fact that they pay their rock face workers R4000pm with no increase, they deserve to be taken over. Disgusting.

      wwrer.ww - 2012-08-17 14:01

      We don't know what their benefits are: free housing, free meals ... they are asking R12000 per worker.

      michael.barns.1 - 2012-08-17 14:40

      um they live in shacks next to the mine, because the mine charges them R1000pm to stay in the hostel. Remember that they don't get a pay raise ever! Its R4000pm take it or leave it attitude, disgusting. Now im starting to understand why Malema wants to Nationalise the mines.

  • djmain1 - 2012-08-17 10:33

    At least Ian Farmer made it to a hospital - some of his workers weren't so lucky. I think Lonmin needs to take some responsibility for this tragedy. They squeezed their workers until they were desperate. It's also very likely that they stoked the fire between these two unions as it would be in their interests to do so. Just as a matter of interest, what is Ian Farmer's salary? How many thousand percent more does he earn than the RDO's?

      michael.barns.1 - 2012-08-17 11:50

      CEO, Ian = R7m pa CFO, Alan = R10m pa Lonmin share price, 1 year return -45% (thats minus 45%) sucks to be an investor in that company!

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