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LON - Lonmin Reaches Agreement With Unions Regarding Restructuring

Release Date: 24/02/2009 09:00
Code(s): LON
Wrap Text

LON - Lonmin Reaches Agreement With Unions Regarding Restructuring At Marikana And Limpopo Lonmin Plc (Incorporated in England and Wales) (Registered in the Republic of South Africa under registration number 1969/000015/10) JSE code: LON Issuer Code: LOLMI & ISIN: GB0031192486 ("Lonmin") Lonmin reaches agreement with unions regarding restructuring at Marikana and Limpopo 24 February 2009 Lonmin Plc ("Lonmin" or "the Company") announces that, following extensive stakeholder consultation processes at each operation, it has reached agreements with the recognised unions regarding the retrenchment of a number of employees at its Marikana and Limpopo operations. The agreement at Marikana allows for a reduction of up to 4,000 full time employees or contractors, 300 of which are expected to be management personnel. Following agreement at Limpopo, the Baobab shaft will be placed on care and maintenance, with around 1,500 full time employees expected to be retrenched. The final number of personnel affected, as well as the associated expected annual cost savings and one-off costs of this down-sizing, will be confirmed once the restructuring programmes at Marikana and Limpopo are completed. Further details will be disclosed at Lonmin`s Interim Results on Monday 11 May 2009. On 18 November 2008, Lonmin announced that it expected sales for the 2009 financial year to be broadly in line with sales in the prior year at around 725,000 Platinum ounces, including an anticipated full year`s contribution from Limpopo of approximately 25,000 Platinum ounces. Following the agreement to place Limpopo on care and maintenance, the Company re-confirms that it still expects to achieve sales of around 700,000 Platinum ounces from a full year`s production at Marikana. Ian Farmer, Chief Executive of Lonmin, commented: "With the current backdrop of challenging economic conditions, these agreements are an important milestone in our objective of restructuring the Company. At Marikana, we are now focused on engaging with our employees to complete the required down-sizing. At Limpopo, the Baobab shaft will be put on care and maintenance as soon as possible. "Our dialogue with the unions has been constructive and pragmatic. We appreciate their active engagement during this difficult period. Whilst the unions have understandably executed their mandate to protect the interests of their members, they have displayed an appreciation of our efforts to ensure the long term sustainability of the Company." Enquiries: Investors / Analysts: Rob Gurner +44 (0) 207 201 6050 Head of Investor Relations Media: Financial Dynamics +27 (0) 21 487 9000 Dani Cohen / Ravin Maharaj Cardew Group +44 (0) 207 930 0777 Antony Cardew / Rupert Pittman Date: 24/02/2009 09:00:03 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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