The world's third-largest producer of platinum has revealed that it intends to cut 1,500 jobs from the Baobab shaft at its Limpopo operation, plus a further 4,000 from its Marikana operation, including 300 management staff.

Production of platinum, has been severely affected by the global downturn and the cuts have been prompted by plunging prices for the metal.

Lonmin said it had reached agreement with unions on the layoffs, which would include 300 management staff, but the National Union of Mineworkers (NUM) has come out fighting, Platts reported yesterday (25th February), heavily criticising the mining company and blaming the move on incompetence. It indicated it will do everything in its power to fight the decision.

National spokesman Lesiba Seshoka was quoted by the news provider as saying: "We dispute the loss of the 4,000 jobs at Marikana and the union is prepared to use any means necessary, up to a strike, to stop this kind of arrogance.

"We think these job losses are down to a lack of proper planning on the part of the company."

Meanwhile, Eddie Mojadibou, the union's representative in Limpopo, revealed that most workers at Boabab are applying for redundancy packages worth two weeks' pay per year's service, plus R10,000.

He expressed his belief that the retrenchments can be largely explained by the mechanisation of the shaft not fitting the mine design, thus causing the company to incur some heavy alteration costs.

However, Dani Cohen, a spokeswoman for Lonmin, told Platts: "Lonmin and the unions are continuing to negotiate - as you know this is a process.

"In the context of a global economic crisis with the platinum price down by more than 50 per cent and the rhodium price down by 85 per cent no organisation can continue with business as usual without a reduction in their cost base."

Source:-

PLATTS: Union heading for fight with Lonmin over job cuts (25/02/09)

Third-biggest platinum producer Lonmin to shed thousands of workers (24/02/09)http://www.monstersandcritics.com/news/business/news/article_1461197.php/Third-biggest_platinum_producer_Lonmin_to_shed_thousands_of_workers_