17th May 2013 13:52
Lonmin Plc4 Grosvenor PlaceLondon SW1X 7YLUnited Kingdom
T: +44 (0)20 7201 6000F: +44 (0)20 7201 6100
www.lonmin.com
REGULATORY RELEASE
17 May 2013
Lonmin Labour Relations Update
Further to the announcement made on 16 May 2013, Lonmin Plc (the "Company") welcomes the formal return to work, confirmed yesterday afternoon, of employees engaged in an unprotected strike.
Lonmin further welcomes the statement issued by the South African Cabinet on Thursday 16 May in which it appealed to the leadership of both the National Union of Mineworkers (NUM) and The Association of Mineworkers and Construction Union (AMCU) to: "…resolve their dispute amicably and put the interests of the country and workers above everything else. Workers must be aware that the unprotected strike could have serious consequences not only for themselves, but for the future of the mine and that of their jobs."
Lonmin has also heeded the Cabinet's appeal to do everything possible to make sure that issues are resolved as soon as possible without further unrest.
On Wednesday afternoon, 15 May 2013, Lonmin secured a court interdict in its favour ordering striking employees to return to work and subsequently informed staff and unions of this development. This was an unprotected work stoppage and the principle of no work no pay was applied.
However, the Company has considered the situation in totality, and in particular, the risk that recent events may escalate and compromise the safety of our employees, property and community members.
Lonmin had already begun the process of de-recognising NUM in respect of category 4 to 9 bargaining unit following the significant changes in union membership at its operations. We can confirm that some aspects of this process will be accelerated in order to ease tensions on the ground at Marikana.
Lonmin can also confirm that it met with AMCU and the Commission for Conciliation, Mediation and Arbitration (CCMA) yesterday with a view to concluding a new recognition agreement with AMCU, which now represents 70% of Lonmin Category 4-9 employees and the discussions are continuing today. We remain committed to the process of seeking a negotiated recognition agreement.
- ENDS -
ENQUIRIES
Investors / Analysts:
Lonmin
Tanya Chikanza (Head of Investor Relations) | +27 11 218 8358 / +44 20 7201 6007 |
Ruli Diseko (Investor Relations Manager) | +27 11 218 8300 |
Media:
Cardew Group
Anthony Cardew/James Clark /Alexandra Stoneham | +44 20 7930 0777 |
Sue Vey | +27 72 644 9777 |
Brunswick - Johannesburg
Itumeleng Mahabane/Cecilia de Almeida | +27 11 502 7400 / +27 83 325 9169 |
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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