Lonmin has confirmed today (5th December) that it is addressing issues at several of its projects as it continues to feel the effects of the current depressed PGM market conditions.

The world's third-largest platinum producer has closed opencast operations at Marikana, which have been running at twice the cost of its 'engine' underground operations at the site, Mining Weekly reports.

In addition, the company's Akanani project is cash-flow negative and is being placed on care and maintenance, while Limpopo is expected to go the same way after talks with labour.

The Saffy and Hossy growth projects are also said to be suffering, but the Pandora project is continuing, mainly due to its low risk and the fact that it is an extension of Marikana's eastern orebody.

Pandora also has its own balance sheet and cash reserves to combat the current downturn in prices and is "paying its own way", according to new Lonmin CEO Ian Farmer.

However, the company has also announced that it has established a restructuring team, which is designed to look closely at all operations and identify where efficiency can be boosted.

Mr Farmer added that this process will take "two to three months" before any new plans can be drawn up.

Source:

Radical change needed to rightsize high cost structure – Lonmin Platinum (05/12/08)
http://www.miningweekly.com/article.php?a_id=148679