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Recovering platinum miner Lonmin has made significant progress in its review of the company’s operating model and management structure, and is now in consultation with its unions – Association of Mineworkers and Construction Union, National Union of Mineworkers, Solidarity and the United Association South Africa and employees on a proposed new operating structure.

The company said that the review of the operating model formed part of the Lonmin Renewal Plan, which was announced at the end of October last year and has been undertaken as part of a strategy aimed at achieving a sustainable business in an environment characterised by weak global market conditions and high input costs.

The ramp-up element of the Renewal Plan delivered excellent results in the first quarter, as announced on 31 January 2013, and is progressing ahead of schedule, Lonmin said in a statement.

The miner noted that about 150 positions were likely to be affected initially, all of which are expected to be in the management levels.

All parties are mindful of the need to preserve jobs wherever possible and manage the process with sensitivity. In view of this, the company is engaging with its affected unionised employees through their registered trade unions as well as with non-unionised employees, as required by South African Labour legislation, to consult on ways to minimise the impact of the restructuring and redundancies that may flow from it.

Lonmin also proposed to engage the services of experts in the relevant fields to assist affected employees by providing counselling, financial planning advice and access to employment advisors.

Lonmin currently employs approximately 28 000 employees.

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