PYX Resources: Achieving volume and diversification milestones. 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
21 Oct 2016 09:39

S.Africa's platinum wage talks in area where agreement can be secured - Implats

JOHANNESBURG, Oct 21 (Reuters) - South Africa's Impala Platinum said on Friday talks over workers' pay with AMCU union have reached a stage where an agreement can be secured. "We continue to engage AMCU so we are in constant contact with AMCU and its our understanding that we are potentiall

Read more
21 Oct 2016 09:28

S.Africa's AMCU union gets members' mandate for platinum wage talks

JOHANNESBURG, Oct 21 (Reuters) - South Africa's biggest platinum mineworkers union AMCU has secured a mandate from its members over wages and other conditions in the industry, it said on Friday. It is unclear what mandate the Association of Mineworkers and Construction Union secured. It sai

Read more
6 Oct 2016 12:38

UPDATE 1-South Africa's AMCU union says platinum wage talks at "critical stage"

(Recasts with comments to conference) By Ed Stoddard and Tanisha Heiberg JOHANNESBURG, Oct 6 (Reuters) - Wage talks are at a "critical stage" between South Africa's Association of Mineworkers and Construction Union (AMCU) and Anglo American Platinum, Impala Platinum and Lonmin, the un

Read more
6 Oct 2016 11:10

South Africa's AMCU union says platinum wage talks at a critical stage

JOHANNESBURG, Oct 6 (Reuters) - Wage talks are at a "critical stage" between South Africa's Association of Mineworkers and Construction Union (AMCU) and Anglo American Platinum, Impala Platinum and Lonmin, the union's president said on Thursday. Speaking to journalists on the sidelines of a

Read more
5 Sep 2016 16:35

UPDATE 1-South Africa's AMCU, platinum mines fail to reach wage deal

(Adds details) JOHANNESBURG, Sept 5 (Reuters) - South Africa's biggest platinum mine-workers' union and the industry have failed to reach a deal on workers' pay, the union said on Monday, raising the prospect of industrial action in the world's top producer of the white metal. The Ass

Read more
5 Sep 2016 15:57

South Africa's AMCU, platinum mines fail to reach wage deal

JOHANNESBURG, Sept 5 (Reuters) - South Africa's biggest platinum mine-workers' union and the industry have failed to reach a deal on workers' pay, the union said on Monday, raising the prospect of industrial action in the world's biggest producer of the white metal. The Association of Minew

Read more
18 Aug 2016 16:10

Lonmin closes project financing for bulk tailings project

(ShareCast News) - Lonmin managed to clinch project financing for its Bulk Tailings Treatment Project, which analysts said would allow the miner to add low-cost production as it progresses on restructuring the business. An unnamed party agreed to provide the platinum producer with $50m through a pro

Read more
2 Aug 2016 10:58

Tuesday broker round-up

(ShareCast News) - HSBC: Berenberg reiterates buy with a target price of 600p. Intertek: Numis maintains reduce with a 3100p target. Barclays: Citigroup reiterates buy with a 135p target. IAG: HSBC stays at reduce with a 325p target. Anglo American: UBS keeps at sell with a target price of 740p.

Read more
1 Aug 2016 13:48

Lonmin shares slide on production update

(ShareCast News) - Platinum producer Lonmin announced its production results for the quarter ended 30 June on Monday, and provided a business update. "[This was] another good quarter in a challenging operating environment," said chief executive Ben Magara. "Again I am pleased that we continue to fo

Read more
25 Jul 2016 15:11

UK Earnings, Trading Statements Calendar - Next 7 Days

Read more
17 Jul 2016 12:43

Sunday newspaper roundup: Lloyds, UK trade deals, BAE, SABMiller, Lonmin, Uber

(ShareCast News) - The new government could accelerate the re-privatisation of Lloyds Banking Group and scrap George Osborne's plan for a sale to retail investors, senior financiers believe. While Mr Osborne wanted to make a profit on every share in the bank, only selling when the price stood at abo

Read more
8 Jul 2016 13:45

Hobbled by 2014 strike, South Africa platinum producers brace for wage talks

* Platinum firms plead poverty, cite low metal prices * Unions seek wage hikes well above 6.1 pct inflation * 2014 union strike hurt producers, led to job cuts By Zandi Shabalala JOHANNESBURG, July 8 (Reuters) - The world's top platinum miners face tough wage talks next we

Read more
7 Jul 2016 11:32

UPDATE 1-South Africa's AMCU union to start wage talks with platinum firms next week

* Union wants $850 minimum wage from platinum industry * AMCU led 5-month work stoppage over pay in 2014 * South Africa's platinum sector hit by rising costs (Adds quotes, details, slugs pix) By Zandi Shabalala JOHANNESBURG, July 7 (Reuters) - The largest union in South

Read more
7 Jul 2016 09:13

South Africa's AMCU union to start wage talks with platinum firms next week

JOHANNESBURG, July 7 (Reuters) - The largest union in South Africa's platinum industry said on Thursday it would begin wage talks with Anglo American Platinum, Impala and Lonmin on July 12, where it would be demanding higher wages for its members. The union said it wanted a 12,500 minimum

Read more
27 Jun 2016 15:25

BROKER RATINGS SUMMARY UPDATE: Deutsche Lifts ITV To Hold From Sell

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.