Today's Labour News

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lonminlogo thumb medium90 90Reuters reports that embattled platinum producer Lonmin was due on Monday to unveil new health and road projects in a ceremony that will be overshadowed by its latest share price collapse.  

Lonmin, not for the first time, is facing an uncertain future after its shares lost 30% on Friday when it delayed annual financial results due this month pending the conclusion of a business review.  The company said it had adequate liquidity to fund it through a review that could include the sale of assets, job cuts and the renegotiation of loan agreements.  Monday’s ceremony will be held at Lonmin’s plush conference centre and game farm, a location that sets it up for a potential public relations “own goal” as trade union Solidarity has urged the company to sell the facility as it moves to cut over 1,100 jobs.  “It is insensitive to retrench mine workers ... whilst enjoying the luxury of a game farm,” Solidarity’s Gideon du Plessis said.  In September, Lonmin advised that the Department of Mineral Resources had noted its failure to meet some of its social and labour obligations.  On Monday, the company plans to show how it is now meeting those obligations, which are an added cost in a tough environment for all platinum producers.

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