Lonmin to sell surplus platinum capacity
Lonmin has said that it will cut costs and sell some assets in a bid to overcome a weak market and to preserve jobs. The cost-cutting measures include selling processing capacity of up to 500,000 ounces per year, the South African platinum miner has said.
Lonmin has gone to the market to raise funds serveral times, announcing in July that it had cut more costs and improved its mining performance in its third quarter. The company said that it would be "taking further decisive action to ensure a sustainable business in a continuing adverse macroeconomic environment".
According to Reuters, while Lonmin has not specified which operators might be willing to buy the capacity, it has said that this action will allow other South African producers which currently sell concentrate to not only sell more highly processed platinum, but also to command a bigger profit margin.
Lonmin is also looking to reduce annual overhead costs by a minimum of R500 million by the end of September 2018.
Pictured: Lonmin CFO, Barrie van der Merwe