Lonmin denies planning to cut SLP spending

Lonmin says it is engaging all interested parties on ways to minimise job cuts at its operations. And, says an Eyewitness News report, the mining giant has refuted claims of it planning to cut spending on social and labour projects. In October, the platinum miner announced plans to cut more than 1 000 jobs due to persistently low commodity prices and rising costs. Lonmin's Wendy Tlou says that while cutting spending on social and labour projects, which include housing and human resource development, is being considered by the company, it is only one part of a prospective plan. ‘We identified something like 12 areas that we could look at, and one of those that was proposed is that we could look at cutting of costs in the SLPs.’ The report states at the same time, Solidarity’s Gideon du Plessis says they are engaging the mine. ‘Monday will be the third round of the consultation process that trade unions have with Lonmin.’

Full EWN report

Mining Weekly had earlier reported that Lonmin planned to cut spending on social and labour projects and freeze ‘non-critical’ recruitment, part of an array of measures to save cash. The report says the company, not for the first time, is facing an uncertain future after delaying annual financial results pending conclusion of a business review. Cutting expenditure on social and labour plans – called SLPs in SA – could be problematic as mining companies are required to meet certain obligations to provide housing and other services to the communities around their shafts to maintain their operating licences. The report says Lonmin spend R270.8m on social and labour plans during the 2016 financial year, the last year for which it has provided full details.

Full Mining Weekly report