Roundtable Discussion; The Future of Mineral Sands. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksLonmin Share News (LMI)

  • There is currently no data for LMI

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Lonmin promises housing plan after S. Africa's Zuma threatens to revoke permit

Mon, 12th Dec 2016 16:00

* Zuma says Lonmin must file compliant plan or risk losingpermit

* Warning puts pressure on Lonmin to spend on workers'housing

By Tiisetso Motsoeneng

JOHANNESBURG, Dec 12 (Reuters) - South Africa-focusedplatinum miner Lonmin is confident of submitting a planto build workers' housing that meets government requirements, itsaid on Monday, after President Jacob Zuma threatened to revokeits mining permit if it failed to do so.

Zuma's warning on Sunday piles pressure on the company tospend more on workers' housing at a time when it is cuttingcosts after being saved from the brink of collapse last year bya deeply discounted $400 million equity cash call.

To secure a mining licence, mining companies must submit aplan for housing and living conditions for their workers, manyof whom come from former "homelands", far from the mines, whereblacks were forced to live in South Africa's racist past.

An inquiry into the death of 34 striking miners, shot bySouth African police outside Lonmin's Marikana mine in 2012,criticised Lonmin in 2015 for failing to comply with its socialand housing obligations.

The 2015 report, chaired by retired judge Ian Farlam, saidthe mines department should take steps to enforce the rules.

After South Africa's Department of Mineral Resources askedfor revisions to Lonmin's housing plan in September, "thecompany is currently reviewing its plan and is confident that itwill submit a plan that is compliant," Lonmin said in astatement.

Lonmin's employee housing plan includes building apartmentsand converting crowded men-only hostels on mine property intobachelor apartments and family units.

Lonmin said in the statement it had completed the conversionof all hostels into 1,908 single and 776 family units.

Zuma said on Sunday his government would consider takingsterner measures that include revoking or suspending Lonmin'smining permit if the company failed to present a housing planwith clear timelines.

"A compliant housing plan will be requested from Lonmin,failing which immediate action in the form of suspension orcancellation of the mining right will be taken," Zuma said instatement.

Last month, Lonmin reported earnings before interest and tax(EBIT) of $7 million for the year ended Sept. 30 versus a lossof $134 million a year earlier and said it would continueclosing inefficient production in 2017 to cut costs.

Shares in the company, which are also listed in London, closed 1.7 percent lower at 24.28 rand in Johannesburg,largely in line with peers. ($1 = 13.6436 rand) (Reporting by Tiisetso Motsoeneng; Editing by Adrian Croft)

More News
10 May 2019 08:45

Lonmin warns on sales as takeover drags on

(Sharecast News) - Lonmin warned annual sales would be at the lower end of expectations on Friday after production fell and the platinum miner was disrupted by delays to its planned takeover.

Read more
25 Apr 2019 16:30

Sibanye Gold Agrees To Increase All-Share Offer For Lonmin By Over 3%

LONDON (Alliance News) - Sibanye Gold Ltd on Thursday said it has reached an agreement with Lonmin PLC on the terms of an increased recommended all-share offer.The miner said Lonmin will up

Read more
15 Apr 2019 09:24

Braemar Shipping Appoints DX's Chair Ronald Series In Same Role

LONDON (Alliance News) - Braemar Shipping Services PLC on Monday said it appointed Ronald Series as non-executive chair with immediate effect.Braemar shares were trading up 1.9% at 165.00 a

Read more
3 Apr 2019 16:12

Rambler Metals Hires Another Mandalay Resources Executive As CEO

LONDON (Alliance News) - Rambler Metals & Mining PLC on Wednesday said Andre Booyze will replace Norman Williams as chief executive with immediate effect.The company, which owns the in

Read more
25 Mar 2019 13:23

Lonmin paints bleak picture as it calls on shareholders to back takeover

(Sharecast News) - Lonmin issued a stark warning on Monday, telling investors it does not have the funds needed to sustain the business long-term, and urged them to back a takeover offer from rival miner Sibanye-Stillwater.

Read more
18 Mar 2019 15:57

UK Shareholder Meetings Calendar - Next 7 Days

Tuesday 19 MarchBlue Prism GroupBB Healthcare TrustWednesday 20 21 22 (re merger with 25

Read more
15 Mar 2019 10:19

Labour Court Says Strike At Lonmin's Operations Would Be Unprotected

LONDON (Alliance News) - Lonmin PLC said on Friday the South African Labour Court has judged a secondary strike proposed by the Association of Mineworkers & Construction Union would be the and

Read more
6 Mar 2019 10:20

Rambler Metals & Mining Appoints New Chief Financial Officer

LONDON (Alliance News) - Rambler Metals & Mining PLC on Wednesday said it has appointed Sanjay Swarup to the position of chief financial officer with immediate effect.Rambler shares 13%

Read more
28 Feb 2019 10:40

WINNERS & LOSERS SUMMARY: Aston Martin Hits Speed Bump After Results

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.----------FTSE 100 - WINNERS----------Rentokil

Read more
22 Feb 2019 09:37

BROKER RATINGS SUMMARY: Sainsbury's Gets More Downgrades

LONDON (Alliance News) - The following London-listed shares received analyst recommendations on Thursday and on Friday morning:----------FTSE 100----------UBS CUTS J TO

Read more
15 Feb 2019 13:27

Lonmin Appoints BEE Partner's CFO Nkosi As Non Executive Director

LONDON (Alliance News) - Lonmin PLC said Friday that it has appointed Sizwe Nkosi as non-independent non-executive director of the company, effective March 1.Nkosi - a chartered accountant

Read more
25 Jan 2019 07:46

LONDON MARKET PRE-OPEN: Vodafone Confirms Outlook; Fuller's Exits Beer

LONDON (Alliance News) - Equities prices in London are seen opening slightly higher Friday, despite a stronger pound set to hinder overseas-exposed FTSE 100 stocks. In early corporate news, has an

Read more
29 Oct 2018 08:23

Petra Diamonds Appoints MC Mining Chairman As Non-Executive Director

LONDON (Alliance News) - Petra Diamonds Ltd said on Monday it has appointed Bernard Pryor and Varda Shine as non-executive directors with effect on January 1, 2019.Pryor is chairman of MC a

Read more
22 Oct 2018 10:48

Lonmin commits to Sibanye deal following $200m purchase pact

(Sharecast News) - Platinum producer Lonmin sealed a $200m metal purchase agreement with Chinese outfit Jiangxi Copper to provide the miner with better liquidity while it waits for South African rival Sibanye-Stillwater's takeover to be finalised.

Read more
10 Sep 2018 12:58

Lonmin risks recede along with rand, Liberum reckons

(Sharecast News) - Lonmin is looking a less risky investment than it seemed a few months ago, said broker Liberum on Monday, upgrading the miner to 'hold'.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.