Lonmin backs down over sack threat to strikers

Published on 22/08/2012 00:00

Platinum miner Lonmin said one in five of its wildcat strikers reported for duty yesterday, following an outbreak of violence at its South African mine that saw 34 workers shot by police.

In all, around a third of its 28,000-strong workforce responded to an appeal to return to work at its Marikana site, after Lonmin initially threatened strikers with the sack. However, it said no action would be taken against those who stay away during a week of mourning declared by President Jacob Zuma.

A spokesman said: “Given the traumatic events of the last ten days this is a delicate process and it will take time for people to come to terms with what has happened. Nothing is being done to risk the continued calm on the ground.”

The group also said it was in “constructive” talks with its banks over its debt facility, as revenues have been hit by the loss of production, and it is likely to breach its covenants at the end of September. It is also considering accessing the equity markets to shore up its finances.

Chief executive Ian Farmer was admitted to hospital last week with a “serious illness” and will be temporarily replaced by chairman Roger Phillimore.