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lonminlogo thumb medium90 90Business Report writes that platinum producer Lonmin said on Friday that it had greater leeway to delay 12,600 job losses because of improved metal prices in the three months to December.  

The company said on Friday the platinum group metal (PGM) basket price had improved, driven by palladium and rhodium.  CEO Ben Magara advised that some shafts that had been earmarked to go on care and maintenance had been kept open for longer.  “The loss of approximately 12,600 jobs announced in 2017 is likely to occur over a longer period than the original three years to 2020,” he indicated.  Lonmin planned to freeze output at the Hossy shaft as part of a measure to cut high production costs in a weak platinum price environment.  “Hossy, which was due to go on care and maintenance at the end of 2018, is now expected to be put on care and maintenance by the end of the financial year,” Magara said.  Lonmin is the subject of a takeover by Sibanye-Stillwater.  Investment analyst Seleho Tsatsi observed:  “As their 2018 financial year results showed, the improvement in the basket price has had a hugely positive effect on the company, allowing it to delay job cuts.  The big question now is whether the deal to merge Lonmin and Sibanye-Stillwater will go through.”

  • Read the original of this report by Dineo Faku in full at Business Report

Read too, Lonmin to delay 12,600 job cuts as conditions improve, at Fin24

Get other news reports at the SA Labour News home page