Lonmin Plans to Cut 21% of Workforce in South Africa

The Guardian reported that South African focused platinum producer Lonmin (LSE:LMI) expects to cut roughly 21% of jobs at its South African operations. The cuts come “as part of a drive to increase profits” following this year’s protracted strikes, according to the Guardian.

As quoted in the publication:

The company, the world’s third-largest producer of the precious metal used for emissions-capping catalytic converters, said in June that the strike and low prices meant restructuring of the business had become inevitable.

Job cuts could trigger more labour unrest, including strikes by the Association of Mineworkers and Construction Union (AMCU).

“There will be six shafts closed and 5,700 jobs will go. That is the plan,” the Johannesburg source, who declined to be identified, said. Lonmin has a staff of about 27,000.

The source did not disclose which shafts would go but said Lonmin had decided it could no longer subsidise the loss-making shafts and had to focus on the profitable ones.

Click here to read the full Guardian article.