Today's Labour News

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lonminlogo thumb medium90 90BL Premium writes that the bold projects Lonmin promised in plans underpinning its mining rights were perhaps too ambitious, assuming tasks that should be the local government’s responsibility, and which have now put a takeover by Sibanye-Stillwater at risk.  

In a court bid to suspend Lonmin’s mines until it complies with its social and labour plans (SLPs) and prevent it from finalising any deals — a factor that would potentially scupper the all-share takeover bid by Sibanye — the Mining Forum of SA (MFSA) has highlighted the dismal track record of the platinum producer in delivering on its SLPs.  Lonmin’s failure to build 5,500 new homes for its workers, many of which were displaced from hostel renovations into single or family units, has been acknowledged by the company’s board as being “linked” to the 2012 violence at Marikana.  Lonmin built just three show houses while the majority of its workforce lived in appalling conditions in informal settlements near the mines.  Included in a broad spread of projects to improve living conditions for communities around its mines were investments to provide bulk water infrastructure; building and improving roads; waste removal; installing street lights; renovating the Brits forensic mortuary; improving security at clinics in the area; and buying ambulances for R31m.  Lonmin and the mineral resources department, which the MFSA accuses of abrogating its responsibilities in enforcing the company’s compliance with the plans, are both contesting the forum’s charges.  However, court documents from Lonmin and the department clearly reveal that the company did not fulfil large chunks of its SLPs.

  • Read this excellent report by Allan Seccombe in full at BL Premium (paywall access)

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