Consolidation the 'bitter medicine' SA platinum needs
Lonmin is not a failing firm, Amcu tells tribunal hearing on platinum producer's merger with Sibanye
Consolidation is the “bitter medicine” the SA platinum industry needs if it is to be saved, Sibanye-Stillwater CEO Neal Froneman told the Competition Tribunal at the hearing of the company’s proposed merger with Lonmin. The deal would breathe new life into the financially distressed Lonmin, which has already commenced its restructuring, which will result in 12,459 job losses. Sibanye-Stillwater’s takeover would bring that number to 13,344, the merging parties said. The Association of Mineworkers and Construction Union (Amcu), however, claims that bad management was the source of Lonmin’s ills and an improving outlook of the platinum price could see it recover very soon. Amcu, in its submission to the tribunal, said that not only had Sibanye refused to commit any capital investments in Lonmin as part of the merger, but its involvement also caused the number of job cuts at Lonmin to rise, although the merging parties refute this. The union further submitted that Lonmin was in far bett...
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