Lonmin notes with great concern the comments quoted in the media attributed to the Mining Forum South Africa and the Bapo ba Mogale Investments (BBMI). A number of grossly incorrect statements have been quoted and require clarity.
The company’s compliance with its Social and Labour Plan (SLP) is of absolute importance to Lonmin. The company engages with and reports to the Department of Mineral Resources (DMR) on an on-going basis, and engages directly with other stakeholders, including legitimate NGOs.
The current SLP is still in its implementation phase. It runs from 2014 to December 2018. In that period, Lonmin had to resize the company resulting in about 6,000 employees being re-skilled with some losing their jobs. Given the economic environment and the continuing low platinum price, we are currently in consultation with employees about the need to protect the employment of the majority of our workforce by a further reduction of some 1,139 contractors and employees.
Following the annual SLP audit conducted in August 2017 by the DMR, Lonmin was requested to submit an action plan to address the areas identified. That action plan has been submitted and received by the DMR, and Lonmin will now give the DMR regular progress updates on the implementation of the action plan.
Lonmin engages with recognised and formal stakeholder structures in the community with regards to SLP and community projects that impact the Greater Lonmin Community (GLC). The company has also engaged with the Bapo ba Mogale community during their protest demands for jobs. Lonmin is committed to play its part in addressing unemployment but successfully addressing what is essentially a national problem will require a collaborative multi-stakeholder effort. Lonmin with the leadership of the DMR, the Madibeng Municipality and the North West Premier’s office have created formal structures to engage with various stakeholders to attend to the issues raised and this process is on-going.
Lonmin’s executives, led by the company’s Chief Executive Officer, met Mr Blessings Ramoba, President of Mining Forum South Africa and five of his colleagues and provided them with the context of Lonmin’s business and the SLPs, the challenges and delays, as well as the successes and plans going forward. Lonmin also reviewed and gave detailed feedback on the Mining Forum South Africa’s flawed assessment of Lonmin’s SLP compliance which was based on doubtful methodology. Subsequent to this engagement, it became clear that Mr Ramoba’s ‘offer’ to Lonmin was to engage Mining Forum South Africa to consult to Lonmin at a fee of R33.1m. Lonmin remains open to engaging with legitimate NGOs that have a direct link to and represent the interests of the GLC.
We must express disappointment that one of our top 20 shareholders, the Bapo ba Mogale, has chosen to engage with Lonmin through the media. We recently agreed to formal engagement structures through which both parties were to meet to address their issues face-to-face. We encourage the Bapo to use these formal structures in future and look forward to the leadership of the DMR in this regard.
Lonmin has awarded significant procurement contracts with a combined gross value of R1.65bn to the Bapo ba Mogale. These contracts are between five and eight years in duration and include stockpile management, ore transport, passenger transport “BAPOTRANS” and PPE equipment supply. Lonmin has provided substantial financial assistance to the Bapo companies established to manage these contracts, as well as the time and expertise of its employees. In addition and in line with the BEE transaction entered into with the Bapo ba Mogale in December 2014, part of the Bapo’s equity for royalty was converted into cash. In this regard, Lonmin pays the Bapo community R20m every year since 2015 until this amount reaches R100m. In addition, a minimum of R5 million per annum is being paid to the Bapo Trust created to uplift the Bapo Community.
Lonmin will continue to engage and report on its SLP action plan with the DMR. The company is of the view that collaboration, trust and respect are key to a constructive relationship with all stakeholders including the Bapo ba Mogale as its host community and shareholder.
Lonmin will continue to engage with the Bapo ba Mogale and all other stakeholders through the official and recognised channels that have been jointly set up.
Lonmin notes with great concern the comments quoted in the media attributed to the Mining Forum South Africa and the Bapo ba Mogale Investments (BBMI). A number of grossly incorrect statements have been quoted and require clarity.
The company’s compliance with its Social and Labour Plan (SLP) is of absolute importance to Lonmin. The company engages with and reports to the Department of Mineral Resources (DMR) on an on-going basis, and engages directly with other stakeholders, including legitimate NGOs.
The current SLP is still in its implementation phase. It runs from 2014 to December 2018. In that period, Lonmin had to resize the company resulting in about 6,000 employees being re-skilled with some losing their jobs. Given the economic environment and the continuing low platinum price, we are currently in consultation with employees about the need to protect the employment of the majority of our workforce by a further reduction of some 1,139 contractors and employees.
Following the annual SLP audit conducted in August 2017 by the DMR, Lonmin was requested to submit an action plan to address the areas identified. That action plan has been submitted and received by the DMR, and Lonmin will now give the DMR regular progress updates on the implementation of the action plan.
Lonmin engages with recognised and formal stakeholder structures in the community with regards to SLP and community projects that impact the Greater Lonmin Community (GLC). The company has also engaged with the Bapo ba Mogale community during their protest demands for jobs. Lonmin is committed to play its part in addressing unemployment but successfully addressing what is essentially a national problem will require a collaborative multi-stakeholder effort. Lonmin with the leadership of the DMR, the Madibeng Municipality and the North West Premier’s office have created formal structures to engage with various stakeholders to attend to the issues raised and this process is on-going.
Lonmin’s executives, led by the company’s Chief Executive Officer, met Mr Blessings Ramoba, President of Mining Forum South Africa and five of his colleagues and provided them with the context of Lonmin’s business and the SLPs, the challenges and delays, as well as the successes and plans going forward. Lonmin also reviewed and gave detailed feedback on the Mining Forum South Africa’s flawed assessment of Lonmin’s SLP compliance which was based on doubtful methodology. Subsequent to this engagement, it became clear that Mr Ramoba’s ‘offer’ to Lonmin was to engage Mining Forum South Africa to consult to Lonmin at a fee of R33.1m. Lonmin remains open to engaging with legitimate NGOs that have a direct link to and represent the interests of the GLC.
We must express disappointment that one of our top 20 shareholders, the Bapo ba Mogale, has chosen to engage with Lonmin through the media. We recently agreed to formal engagement structures through which both parties were to meet to address their issues face-to-face. We encourage the Bapo to use these formal structures in future and look forward to the leadership of the DMR in this regard.
Lonmin has awarded significant procurement contracts with a combined gross value of R1.65bn to the Bapo ba Mogale. These contracts are between five and eight years in duration and include stockpile management, ore transport, passenger transport “BAPOTRANS” and PPE equipment supply. Lonmin has provided substantial financial assistance to the Bapo companies established to manage these contracts, as well as the time and expertise of its employees. In addition and in line with the BEE transaction entered into with the Bapo ba Mogale in December 2014, part of the Bapo’s equity for royalty was converted into cash. In this regard, Lonmin pays the Bapo community R20m every year since 2015 until this amount reaches R100m. In addition, a minimum of R5 million per annum is being paid to the Bapo Trust created to uplift the Bapo Community.
Lonmin will continue to engage and report on its SLP action plan with the DMR. The company is of the view that collaboration, trust and respect are key to a constructive relationship with all stakeholders including the Bapo ba Mogale as its host community and shareholder.
Lonmin will continue to engage with the Bapo ba Mogale and all other stakeholders through the official and recognised channels that have been jointly set up.
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