Lonmin Job Cuts May Be Inevitable Due to Platinum Drop, CEO Says
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Lonmin Plc said job cuts at its platinum mines in South Africa may be inevitable as metal prices remain near the lowest level in more than five years.
The world’s third-biggest platinum producer is recovering from a five-month strike at its South African operations in the first half of last year by reviewing mines, imposing a hiring freeze and cutting capital as it seeks to preserve cash. Prices for the metal tumbled 23 percent from a 2014 peak to $1,176.75 an ounce on Dec. 22, the lowest since July 2009. Platinum has since recovered 8.5 percent.