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LONMIN PLC - Wage negotiations update

Release Date: 18/06/2014 15:35
Code(s): LON     PDF:  
Wrap Text
Wage negotiations update

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


18 June 2014

                                    Wage Negotiations Update

Further to the announcement issued on Thursday, 12th June 2014, Lonmin Plc (“Lonmin” or “the
Company”) confirms that it has received written feedback from Association of Mineworkers
and Construction Union (AMCU) president Joseph Mathunjwa. This follows an ‘in principle’
agreement reached between the three platinum producers, Anglo American Platinum
Limited (Amplats), Impala Platinum Holdings Limited (Implats) and Lonmin Plc (Lonmin) ‘the
companies’ and AMCU leadership last week. AMCU committed to take this agreement to its
members at the various mass meetings to receive a mandate from their members to sign an
agreement.

The letter received from AMCU confirmed that the union had received a mandate from its
members to finalise agreements with the companies that would bring an end to the five-
month strike. The letter raises various procedural issues, such as the timeframe of
proposed agreements and the logistics around a return to work, which the companies are
willing to finalise with the union leadership. Regrettably, however, the letter also contains
new and additional demands which, if granted, would mean significant additional costs for
Lonmin – in excess of R200 million and well beyond the increases contained in the ‘in
principle’ agreements.

The goal remains a sustainable solution beneficial to all stakeholders on the basis of the ‘in
principle’ agreement reached with AMCU. Lonmin is currently engaged with AMCU on their
feedback in order to achieve a return to work in line with the ‘in principle’ agreement
reached.

A separate media joint media statement by the producers is available   on
www.platinumwagenegotiations.co.za

- ENDS –


ENQUIRIES

Investors / Analysts:
Lonmin
Tanya Chikanza (Head of Investor Relations)        +27 11 218 8358 /
                                                   +44 20 7201 6007
Floyd Sibandze (Investor Relations Manager)        +27 11 218 8300
Media:
Cardew Group
James Clark                                            +44 20 7930 0777
Sue Vey                                                +27 72 644 9777

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.

For further information please visit our website: http://www.lonmin.com

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