Lonmin has not lived up to its SLP promises
Publish date: 07 November 2018
Issue Number: 262
Diary: Legalbrief Workplace
The bold projects Lonmin promised in plans underpinning its mining rights were perhaps too ambitious and have now put a takeover by Sibanye-Stillwater at risk. Business Day reports that 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 – Mining Forum of SA has highlighted the dismal track record of the world’s third-largest platinum producer in delivering on its SLPs. The report says Lonmin has never come close to meeting its early promises of building 5 500 houses for its employees. It is one of the commitments made in the heady days of large profit margins that came back to haunt the company when it was the worst affected of the major platinum producers by protracted strikes, labour unrest and low metal prices. But Thandeka Ncube, Lonmin’s head of stakeholder engagement and regulatory affairs, said in the three years from 2014, Lonmin had spent nearly R730m on its SLPs and had not ‘ignored or abandoned’ its obligations as alleged by the Mining Forum.