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Lonmin Release 8-24-12
The week of national mourning and the moving memorial events at Marikana
on Thursday, have been vital in bringing calm, and a time for reflection
and remembrance.
It has also created the space for unity. All stakeholders agreed in
ceremonies this week that it is time to move forward and begin the gradual
journey back to normality.
Lonmin's management is committed to this process and its absolute focus in
the coming days will be to reach a peace accord, under the auspices of the
Department of Labour, which allows for a peaceful return to work and an
environment in which the concerns of all stakeholders can be addressed.
Simon Scott, Acting CEO, said: “We welcome the Department of Labour’s
efforts in facilitating the peace accord and we congratulate the Department
and all participants in this regard. It is clear that everyone involved
wants to move forward. We are dealing with tragic and challenging issues,
and will be for a long time to come, but for the sake of the Company, its
many thousands of employees and the industry which supports them we need to
find a sustainable peace accord which allows people to return to a working
business. That we are committed to doing in the coming days.”
The Company has always said, and maintains, that it will discuss the
strikers’ demands in the normal way, through their unions within the
agreements which the Company and all unions involved have signed up to, but
that requires the unprotected action to end. It has never refused to
consider their demands.
The week of mourning which began on Monday, announced by the President of
the Republic of South Africa, and the memorial events of yesterday
(Thursday) have been an opportunity for calm, reflection and remembrance.
Lonmin agrees with union leaders who spoke at yesterday’s memorial events
that next week marks an opportunity to begin the journey back to normality
which is vital for the Company’s 28,000 employees, and for the country, and
is grateful for their call for the Company to be supported, for the sake of
their members. Clearly, achieving normality will be a long journey given
the terrible events of the last two weeks, but without a return to work
that journey cannot start.
Lonmin, alongside the Unions, will continue to communicate to its wider
workforce over the weekend, asking employees to report for work as normal
on Monday.
The Company has also been asked to provide clarity on wages after a number
of conflicting reports. n
*In order to ensure that Lonmin wages are market related, the Company
undertook research to assess the wage level in the industry. Based on these
findings, Lonmin took a decision to implement a drilling allowance of R750
per month for the RDOs, a practice which occurs in the mining industry.
This brings the RDO guaranteed wage to just shy of R10,000 per month and is
in line with other industry participants. In addition, the RDOs can earn
performance bonuses. The average bonus earned is R1,500, but some are in
the order of R6,000. *
In the five years from 2007 to 2011, the RDOs were granted a cumulative
pay rise of 62%. This compares with a cumulative 45% for level D managers
and 34% for level E managers over the same period. A complete salary
breakdown is shown in Table 1.
Table 1: Complete RDO salary breakdown Basic
Pension
(14.83%)
Medical
Housing
Holiday Leave Allowance
RDO Allowance
TOTAL
*RDO R 5,405.00 R 801.56 R 556.00 R 1,850.00 R 450.42 R750.00 R 9,812.98 *
•*Black Economic Empowerment *
The Charter also provides targets for both Black Economic Empowerment (BEE)
and for Historically Disadvantaged South Africans (HDSAs).
Shanduka, our BEE partner, has an 18% equity interest in Western Platinum
Ltd and Eastern Platinum Ltd. We are committed to achieving 26% ownership
by the Charter’s requirement of 2015.
• *Human Resource Development *
In 2011 we spent $29 million on human resources development programmes,
including adult basic education training and equipping young people living
in the areas around our mines with the skills to work for us. The Lonmin
Artisan College is a key part of this.
Our recruitment policy gives preference to HDSA candidates and amongst
permanent employees 46.5% of management is categorised as HDSA, including
white women.
• *Water supply *
Lonmin has provided water reticulation in Oustad, which has enabled yard
connections for 407 households.
As we move towards calm and stability, Lonmin expresses its appreciation
for the support and encouragement that we have received following the
tragic events which occurred at Marikana.
- ENDS -
ENQUIRIES *Investors / Analysts: *
*Lonmin Tanya Chikanza (Head of Investor Relations) +44 (0)20 7201 6007
Ruli Diseko (Investor Relations Manager) +27 (0)11 218 8373 Media: Cardew
Group James Clark (London) *
Emma Crawshaw (London)
Alexandra Stoneham (London) +44 (0)20 7930 0777
+44 (0)20 7930 0777
+44 (0)20 7930 0777 Sue Vey (Johannesburg) +27 (0)72 644 9777 *Inzalo
Communication *(Johannesburg) Gillian Findlay +27 (0)82 330 1477 Refilwe
Madihlaba +27 (0)82 386 8468 Bridget von Holdt +27 (0)82 610 0650 *General
Media Address: *
me...@lonmin.com +27 (0)14 571 2055/2060
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