Lonmin to terminate M&R K4 staff contract

By Drum Digital
17 September 2012

Lonmin will put its K4 shaft into care and maintenance and terminate a contract with Murray & Roberts, which supplies around 1200 staff, it said on Monday as a strike continued.

The company said it announced on July 26 that, in light of the weak pricing environment, some capital spending at its K4, Hossy, and Saffy shafts in the Rustenburg area, would be deferred to reduce annual capital spending for 2013/14 to US250 million (about R2bn) a year.

"Lonmin further announces today, that as part of that on-going capital expenditure review it will be moving its K4 shaft to care and maintenance," it said in a statement.

"The company has today, Monday, given notice to terminate its contract with Murray & Roberts, the contractor which supplies approximately 1200 staff at the K4 shaft with effect from 17 October 2012."

Operations ground to halt when workers at Lonmin's Marikana platinum mine went on strike on August 10, in demand of a R12,500 monthly wage.

In the days following, 10 people including two security guards and two policemen, were killed. Then, on August 16, 34 people died when police fire on them. A union shop steward was found dead in the area last week.

The strike has since spread to other mines in the area.

Pay talks have reopened between the unions and representatives of the workforce of around 28,000 people at Lonmin's Marikana mine.

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