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Andre Janse van Vuuren
25 Jul 2015 12:45
Families of the slain Marikana miners gather in a Lonmin boardroom to listen to Zuma's report on national television on June 25, 2015.
Johannesburg-based Lonmin, the world’s third-biggest platinum producer, may cut as many as 6 000 jobs and close shafts
as prices slumped to the lowest in six years.
Lonmin plans to close its Hossy and Newman shafts
and idle three others, reducing annual output by 100 000 ounces, the
Johannesburg-based company said in a statement Friday. The planned job cuts
include contractors and staff who took voluntary redundancy packages offered in
May, Lonmin said.
Mining companies in South
Africa, which accounts for more than 70% of global platinum output,
are looking to reduce costs as profit margins shrink with tumbling metal
Platinum has dropped 45% since the start of 2011.
“The consequence of these decisions will be that
the remaining shafts will allow for a smaller, more sustainable and agile
business,” it said.
Lonmin, which employed more than 28 000 people as
of September 30, is making a loss before interest, tax, depreciation and amortisation,
the company said.
“Our cost-minimisation plans are designed to
improve this position as much as possible,” it said.
Lonmin will review its capital structure and will
make an announcement by November, it said.
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