8th Oct 2014 11:45
LONDON (Alliance News) - Lonmin PLC, the platinum group metals producer with producing assets in the Bushveld complex in South Africa, Wednesday said it has returned to full production earlier than it had forecast, after staff returned earlier than expected after five months of strike action by platinum miners in the country.
The company said production in August and September exceeded production in the comparable period in 2013, which was 2 million tonnes. Lonmin did not release the production figures for August and September 2014, stating it will provide a more details in its fourth-quarter production update and final year results on November 10.
The company originally aimed to return to achieve full production rates by the end of 2014, following major strike action by platinum miners in South Africa.
Staff returning to work earlier than expected following five months of strike action, which ended in June, has allowed the company to increase production ahead of schedule, it said.
"Our successful ramp up has been accelerated by earlier and stronger levels of employees returning to work...Prudent cash and balance sheet management has enabled return to full production to be completed well within the company's existing financial resources," said Lonmin.
The major platinum mining companies in South Africa announced on June 24, that they had settled their dispute with the Association of Mineworkers and Construction Union in South Africa, ending five months of crippling strike action.
Lonmin shares were up 3.6% to 176.70 pence per share Wednesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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