South Africa Mining

“Bid to have Lonmin’s mining license suspended heads to court”

The mining forum of South Africa, heads to the North West High Court, Mahikeng, this week to have Lonmin’s mining license suspended.

According to the ground report, the suspension is due to the fact that, Lomni has not met the commitment of its  Social and Labor plan (SLP), and also wants the mining rights of Lonmin-controlled western, and eastern platinum to be also suspended.

The forum is asking the court to interdict Lonmin from disposing off, ceding or transferring it’s marikana mineral rights until it has implemented it’s SLP.

This action will block the planned R5billion takeover of Lonmin by Sibanye-Stillwater, which would make Sibanye the second largest platinum miner in the world and throw a lifeline to Lonmin’s ailing mining operations.

In its court papers, the forum said Lonmin failed to build houses for mine workers as promised in its SLP. It also claimed the company failed to build schools and that children have to travel long distances to school.

In terms of Lonmin’s SLP, nearly R69million was to be spent on basic education, primarily to benefit employees, and another R90million on skills development. Yet a further R17.8million was earmarked for job creation programs but all these too did not materialize.

The forum argues that the sale of Lonmin to Sabanye-Stillwater will erode the group’s obligations to the community.