Lonmin will comply despite unfavourable economic climate

Cape Town – Lonmin [JSE:LON] said it is confident it will submit a housing plan that is compliant on Monday, after President Jacob Zuma announced steps government has taken to implement the Farlam Commission recommendations.

“Lonmin has taken proactive steps to meet its obligations despite the unfavourable economic climate by including long term, sustainable housing solutions in our capital expenditure budgets," it said in a statement.

Zuma said on Sunday that “a compliant housing plan will be requested from Lonmin, failing which immediate action in the form of suspension or cancellation of the mining right will be taken”.

“Audit inspections many be conducted at the mine, on a bi-monthly basis to ensure compliance, and administrative action taken where necessary.”

In response, Lonmin said it has implemented a number of measures as part of its ongoing housing plan and has completed the conversion of all hostels into 1 908 single and 776 family units.

The inquiry was instituted following the 2012 Marikana Massacre, in which 34 mineworkers at Lonmin were killed, 78 wounded and 250 arrested.

“Following engagement with and directions provided by the Department of Mineral Resources in September 2016 requiring certain revisions to Lonmin's housing plan, the company is currently reviewing its plan and is confident that it will submit a plan that is compliant,” Lonmin said in a statement.

“Lonmin's revised employee housing strategy, which includes the construction of infill apartments, is the product of the continuing survey of employees' housing preferences.

“We continue to work on collaborative projects such as the Special Presidential Package to improve infrastructure and housing.”

Lonmin's share price was 1.54% lower at R24.31 at 15:55 on Monday.