26th Aug 2014 12:06
LONDON (Alliance News) - Platinum mining company Lonmin PLC Tuesday moved to quash press speculation that it planned to cut around 5,700 jobs in a bid to boost profits following the five-month wage strike earlier this year.
"The board... has noted recent press speculation which is entirely without foundation. No decisions, about the size and shape of any restructuring of the business, have been made," the company said in a statement Tuesday.
The FTSE 250-listed platinum producer hit back at a press report by Reuters and other media institutions that it aims to cut about 5,700 jobs, 21% of its South African workforce, as part of a drive to increase profits, after five months of major strike action by platinum miners in South Africa which ended in June.
According to Reuters, who cited two mining industry sources, the plan would see the closure of four to six of the company's 11 shafts.
In a statement Tuesday, Lonmin said its immediate focus now following the strike, is to "achieve a safe ramp up of production in order to rebuild the business and restore profitability."
Lonmin said that "safety, containing costs and maximising productivity" are "crucial to the process," and said that ramp up is progressing better than planned.
Lonmin shares were trading 1.8% higher Tuesday at 221.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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