| Tue 24 Feb 2009, 9:00 | | LON - Lonmin Reaches Agreement With Unions Regarding Restructuring |
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LON
LOLMI
LON - Lonmin Reaches Agreement With Unions Regarding Restructuring
At Marikana And Limpopo
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN: GB0031192486
("Lonmin")
Lonmin reaches agreement with unions regarding restructuring at Marikana and
Limpopo
24 February 2009
Lonmin Plc ("Lonmin" or "the Company") announces that, following extensive
stakeholder consultation processes at each operation, it has reached agreements
with the recognised unions regarding the retrenchment of a number of employees
at its Marikana and Limpopo operations.
The agreement at Marikana allows for a reduction of up to 4,000 full time
employees or contractors, 300 of which are expected to be management personnel.
Following agreement at Limpopo, the Baobab shaft will be placed on care and
maintenance, with around 1,500 full time employees expected to be retrenched.
The final number of personnel affected, as well as the associated expected
annual cost savings and one-off costs of this down-sizing, will be confirmed
once the restructuring programmes at Marikana and Limpopo are completed. Further
details will be disclosed at Lonmin`s Interim Results on Monday 11 May 2009.
On 18 November 2008, Lonmin announced that it expected sales for the 2009
financial year to be broadly in line with sales in the prior year at around
725,000 Platinum ounces, including an anticipated full year`s contribution from
Limpopo of approximately 25,000 Platinum ounces. Following the agreement to
place Limpopo on care and maintenance, the Company re-confirms that it still
expects to achieve sales of around 700,000 Platinum ounces from a full year`s
production at Marikana.
Ian Farmer, Chief Executive of Lonmin, commented:
"With the current backdrop of challenging economic conditions, these agreements
are an important milestone in our objective of restructuring the Company. At
Marikana, we are now focused on engaging with our employees to complete the
required down-sizing. At Limpopo, the Baobab shaft will be put on care and
maintenance as soon as possible.
"Our dialogue with the unions has been constructive and pragmatic. We appreciate
their active engagement during this difficult period. Whilst the unions have
understandably executed their mandate to protect the interests of their members,
they have displayed an appreciation of our efforts to ensure the long term
sustainability of the Company."
Enquiries:
Investors / Analysts:
Rob Gurner +44 (0) 207 201 6050
Head of Investor Relations
Media:
Financial Dynamics +27 (0) 21 487 9000
Dani Cohen / Ravin Maharaj
Cardew Group +44 (0) 207 930 0777
Antony Cardew / Rupert Pittman
Date: 24/02/2009 09:00:03 Produced by the JSE SENS Department.
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