Lonmin today warned striking workers at it Marikana platinum mine in South Africa that if it cannot reach a settlement with them they could face massive job cuts.
The London-based miner also slashed its output forecast for the year which ends this month, from 750,000 ounces to between 685,000 and 700,000 ounces. It said costs had already risen by more than the 8.5% it predicted earlier this year.
Acting chief executive Simon Scott said: “Our view is that negotiations are the best way to achieve a sustainable return to work. Clearly however, there will be consequences to jobs if there is a continuing delay in returning to production.
“The situation is delicate but we have limited options in terms of managing the trade-off between lost production, higher wages and business rationalisation, including a significant reduction in jobs.”
By contrast Anglo American Platinum, which suspended work last week because of threats to workers, plans to reopen its mines tomorrow, saying: “The situation in Rustenburg remains calm and our current intention is to resume operations on Tuesday morning.”
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