Global platinum production drops after one-month strike

Lonmin, the world’s third largest mine, located in South Africa, has reported a $34 million operating profit for the first quarter of the year, as compared to the $93 million reported for the same period of last year.

The serious plunge in earnings comes after a month-long strike of workers angry about their salary and working conditions.

Lonmin chief executive, Ben Magara, said: ‘This has been a challenging first half of the year, latterly dominated by protracted industrial action. Whilst we continue to work to resolve this dispute we have also taken decisive and early action to reduce cash burn, to safeguard our great assets and protect our balance sheet integrity ahead of a safe and successful ramp-up when the strike ends.’

While Lonmin declared that it cannot satisfy the workers’ requests and double their pay, the company’s larger competitors, Anglo American Platinum and Impala Platinum, which have also been affected by the strike, presented the employees with new wage offers.

Overall, the strike has caused a 40% drop in platinum production worldwide and represents South Africa’s longest and most costly labor stoppage.