Platinum miner Lonmin could miss its annual production target by two per cent as a result of unprotected industrial action at its Karee operations.

RBC Capital Markets analyst Leon Esterhuizen believes it is almost certain that the company, the world's third largest platinum producer, will not produce its annual goal of 750,000 oz to the end of September this year. Speaking to Bloomberg, he said the target is likely to be cut to around 730,000 oz for the year.

He explained that the Karee mine, which is part of Lonmin's Marikana operation, produces around 1,500 oz of platinum a day. So far, it is estimated that ore mined by the company at Karee has fallen by 17,000 t/d since the strikes began on May 17th.

"The whole industry needs to worry," Mr Esterhuizen added. "There's a growing sense of militancy and aggressiveness in the labour unions."

Lonmin has now dismissed all 9,000 workers involved in the action, which was caused by an internal dispute among members of the local branch of the National Union of Mineworkers (NUM).

The company has said it will re-hire some of the workers, though it unclear how many and no guarantees have been given. Lonmin has begun the reselection process, with sacked workers now able to reapply, investor relations head Tanya Chicanza told online news service IOL.

Lesiba Seshoka, NUM national spokesman, explained to the news provider: "It can't be right to have Lonmin retrench workers when the country is faced with the mammoth task of job creation."

Sources:



Lonmin Could Miss Its Platinum Output Target Due to Karee Strike, RBC Says (25/05/11)



Thousands reapply for Lonmin jobs (26/05/11)



Lonmin dismisses striking workers, 17 000 t/d of production lost (24/05/11)



Lonmin to dismiss 9000 (24/05/11)



Lonmin says output disrupted at South Africa mine (20/05/11)
 

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