South Africa – Lonmin job cuts could bring more unrest

Lonmin management and workers appeared on Wednesday to be shaping up for a new battle after the strike-hit mining company said jobs would be cut.

The world’s third largest platinum producer, Lonmin is scrambling to get back on its feet after a violent six-week strike at its Marikana mine that crippled production and led it to ask shareholders for $800 million in a rights issue on Tuesday.

It also gave unions notice of a restructuring, with proposed job losses in its 25,000-strong work force expected to be implemented in early 2013.

“We haven’t decided how many employees will be impacted. What we have said is we are freezing our production target at 750,000 ounces for the next two years,” Lonmin spokeswoman Sue Vey said.

“What we are doing is shaping the business accordingly.”..

via Lonmin job cuts could bring more unrest in South African mines | Reuters.