[miningmx] — LONMIN CEO Ian Farmer has been diagnosed with a serious illness
and admitted to hospital, the platinum group said on Thursday.
The development came as the company’s Marikana operations have been brought to
a virtual standstill in the wake of labour-related violence that claimed the lives of at
least 10 people by Wednesday.
Lonmin said there was no connection between the unrest and Farmer’s health. “He
wasn’t feeling well and went for a check-up,” said a spokesperson, who declined to
give more information about Farmer’s condition. He was expected though to stay
away from work for a considerable while.
The group said the day-to-day business of the company would temporarily be the
responsibility of the Executive Committee (Exco) under Chairman Roger Phillimore’s
leadership. In addition, Mohamed Seedat, a director of the business and until 2010
the COO of Lonmin, would join the Exco to provide added support.
POLICE OPEN FIRE
Reuters reported late on Thursday that the South African police opened fire
on striking miners, with one witness saying he saw at least seven bodies lying on the
ground. The newswire later reported the police have confirmed the number of fatalities at 30.
“Police at the scene said they had been trying to negotiate with the striking rock drill
operators massed on a rocky outcrop near the mine, but the talks had failed,” read
the Reuters report.
In its own update on the labour unrest, Lonmin said matters remained tense.
The spiral of violence was sparked by an illegal strike of 3,000 rock drill operators
(RDOs) on Friday. The group said the RDOs were issued with a final ultimatum on
Thursday to return to work by their next shift on August 17, or face dismissal.
As a result of the disruption, Lonmin has so far lost six days of mined production,
representing around 300,000 tonnes of ore (15,000 platinum equivalent ounces).
The group said it would therefore be unable to meet its full-year guidance of
750,000 oz of platinum, although the extent of the variation would depend on the
timing and speed with which normal operations could safely resume. Subsequently,
unit costs would also be negatively impacted and earlier guidance of an 8.5%
increase exceeded.
Lonmin’s shares, which traded at more than R96 prior to the onset of the labour
standoff, lost another 5.8% on Thursday and sold for R85.04 during late-afternoon
trade.
