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lonminlogo thumb medium90 90BusinessLive reports that Sibanye-Stillwater’s all-share bid for world number three platinum miner Lonmin cleared an important hurdle on Monday.  The Competition Commission (CC) recommended the transaction with conditions, particularly on job losses and procurement deals.  

The Competition Tribunal will have the final say on the transaction.  By acquiring Lonmin, Sibanye will become the world’s second-biggest platinum producer after Anglo American Platinum.  Among key CC concerns were the loss of up to 3,000 jobs it calculated would result from Sibanye taking over Lonmin’s mines and processing plants, the continuation of procurement deals Lonmin has with communities and other smaller parties, as well as agreements with the Bapo ba Mogale community and continuation of social and labour plans.  The job losses were over and above the 12,600 positions Lonmin has said it was cutting over a three-year period as a result of closing old, depleted and unprofitable mines.  One of the conditions of approval of the deal was the creation of three “short-term mining projects which were earmarked to avoid retrenchments”.  “The employment savings on two of these three projects are likely to materialise in the event that platinum prices increase in future and mining costs are maintained at certain levels,” the CC said.  The CC also said Sibanye had to continue with Lonmin’s procurement deals with black-owned companies and individuals.

  • Read this report by Allan Seccombe in full at BusinessLive
  • Read too, Conditions set as Sibanye obtains approval for R5bn Lonmin takeover, at Business Report
  • And also, Sibanye, Lonmin still committed to merger after competition watchdog decision, at Mining Weekly

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