Lonmin released a statement refuting media reports that it plans to axe 5 700 jobs in order to  improve profitability following the protracted platinum strike that hurt the sector this year.

Magara said that there was not an ‘iota of truth’ in a Reuters report that stated that four to six of the company’s 11 shafts would be closed down.

Reviewing costs

“We are ramping up our operations according to plan. We are reviewing our profitability and costs and we’ll update the market in due course,” Magara told Business Day.

Lonmin spokesperson Sue Vey said the world’s third-largest platinum producer had made it clear it was reviewing its assets but that she had ‘no knowledge’ of the plans on which Reuters was reporting.

Restructuring inevitable

“As we have said in our interims (half-year results), restructuring is inevitable because of the five-month strike, but until we reach steady state production we cannot assess the extent of the restructuring, if it is at all necessary,” said Vey, according to a Business Day report.

Steady state production could be reached towards the end of the year, Vey noted.