Wrap Text
Regulatory Release - Update on Protected Strike Action
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")
Regulatory Release - Update on Protected Strike Action
The following statement has been released in Johannesburg by Lonmin Plc (“Lonmin” or “the
Company”) in conjunction with Anglo American Platinum Limited and Impala Platinum Holdings
Limited:
PRODUCERS TABLE SETTLEMENT OFFER TO AMCU
Producers to take settlement offer directly to employees
Johannesburg, 24 April 2014: Anglo American Platinum Limited (Amplats), Impala Platinum Holdings
Limited (Implats) and Lonmin Plc (Lonmin) advise that, unfortunately, no resolution has yet been
achieved in resolving the three-month strike relating to wages and benefits. This follows the recent
meetings between the producers and representatives of the Association of Mineworkers and
Construction Union (AMCU), in a process facilitated by the Minister of Labour.
The producers urged AMCU’s leadership to consider the economic position of the industry and the
companies, and the dire circumstances of employees, and to recommend the settlement offer made
by the producers to their members.
The settlement offer has been made in the interest of bringing an end to the 13-week strike that has
crippled the platinum sector and has brought untold hardship to employees, their families,
communities and the companies.
CEOs, Chris Griffith, Terence Goodlace and Ben Magara said: “We strongly urge the AMCU
leadership to take this fair settlement offer to their members and to let them decide. The producers
have a duty to provide the details of the settlement offer to our employees and will do so
forthwith.”
The settlement offer tabled by the producers on Thursday, 17 April 2014, would see the minimum
cash remuneration (comprising basic wages and holiday, living-out and other allowances) for entry
level underground employees rising to R12,500 per month (R150,000 per annum) by July 2017. For
Lonmin employees this reflects an increase in cash remuneration for the highest-paid employees of
7.5% and an increase for the lowest earners of 9.5%. For Amplats and Implats employees, this is an
increase in cash remuneration of 7.5% for the highest-paid employees and an increase of 10% for
the lowest earners. This revised offer is one of the highest increases anywhere in the sector and the
country.
Allowances (such as the living out allowance) will rise in line with inflation. Allowances that are
determined by an existing formula (such as the holiday leave allowance), will continue to apply.
By implementing these increases over the period, the cost to company for the lowest paid
underground employees would be in excess of R17,500 per month (R210,000 per annum) by July
2017. In addition to cash remuneration, the cost to company includes medical, pension, overtime
and bonuses.
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The companies remain committed to dealing with long term issues of mutual concern, such as
labour migrancy and living conditions, through company-level joint task teams.
The offer currently includes the payment of back-pay related to the annual increase. This would
take effect from 1 July 2013 for Amplats and Implats employees, and from 1 October 2013 for
Lonmin employees. The principle of ‘no work, no pay’ applies for the duration of the strike.
To date, the strike has cost employees some R6.4 billion in lost income and the producers around
R14.5 billion in lost revenue.
25 April 2014
-ENDS-
ENQUIRIES
Investors / Analysts:
Lonmin
Tanya Chikanza +27 11 218 8300
Floyd Sibandze +27 11 218 8300
Sue Vey +27 72 644 9777
Media:
Cardew Group
Anthony Cardew / James Clark +44 20 7930 0777
Sponsor: J.P. Morgan Equities South Africa (Pty) ltd
Notes to editors
Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is
one of the world's largest primary producers of PGMs. These metals are essential for many industrial
applications, especially catalytic converters for internal combustion engine emissions, as well as
their widespread use in jewellery.
Lonmin's operations are situated in the Bushveld Complex in South Africa, where nearly 80% of
known global PGM resources are found.
The Company creates value for shareholders through mining, refining and marketing PGMs and has a
vertically integrated operational structure - from mine to market. Lonmin's mining operations
extract ore from which the Process Division produces refined PGMs for delivery to customers.
Underpinning the operations is the Shared Services function which provides high quality levels of
support and infrastructure across the operations.
Announcements relating to the situation can be found on Lonmin’s website at:
http://www.lonmin.com
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