/ 24 August 2007

End strike or else, Lonmin tells miners

Lonmin, the world’s third-largest platinum producer, on Friday told employees taking part in a strike at its Marikana operations in the North West to return to work or face dismissal.

The company said in a media statement that it had issued the ultimatum on Friday morning.

It said it told all employees to “return to work on or before the night shift commencing on Tuesday August 28 2007, or be dismissed without further notice”.

“Lonmin wishes to ensure that all employees are aware that the current strike action is unlawful and unprotected and in contravention of an order made by the Labour Court on August 17, 2007,” it said.

Lonmin, which mines about 95% of its production from its Marikana operations on the western limb of South Africa’s platinum-rich Bushveld complex, said the strike was costing it 3 400 platinum ounces in lost production a day.

The strike has been under way since Sunday, making Friday the fifth day the mine has been out of operation.

An estimated 25 000 mine employees have been protesting against a new payment system, which they said resulted in some workers not being paid and other being paid too much.

“Lonmin has engaged in ongoing dialogue with the National Union of Mineworkers since the strike action commenced to achieve a return to work,” the company said, adding that it was aware that on Friday the union had informed its members that they should immediately return to work.

The union has, in the meantime, said the strike had been suspended pending the outcome of a court hearing set for September 3.

At 4.24pm, Lonmin’s JSE-traded shares were trading R1,75 firmer at R461,95. — I-Net Bridge