POLITICAL ECONOMY

Lonmin CEO hospitalised with serious illness

The platinum miner said in a SENS statement Thursday that CEO Ian Farmer has been diagnosed with a serious illness and is presently in hospital.

JOHANNESBURG - 

Lonmin, which is dealing with a crippling strike and outbreaks of violence at its Marikana mine which saw ten people killed, reported on Thursday that its CEO Ian Farmer is in hospital.

Farmer has been "diagnosed with a serious illness and is presently in hospital", the platinum producer, said in a Sens statement.

Its Chairman Roger Phillimore will look after Farmer's day-to-day duties. In addition, Mohamed Seedat, a director of the business will join the Exco to provide added support.

Lonmin also said the situation at its Marikana mines has remained relatively quiet since the morning of Wednesday August 15 but matters remain tense.

"The striking Rock Drill Operators (RDOs) remain armed and away from work. This is illegal under the Labour Relations Act. Consequently, and in keeping with the terms of a Court Order granted to Lonmin on August 11 2012, the illegal strikers have today (Thursday 16 August) been issued with a final ultimatum to return to work by their next shift on Friday August 17 or face dismissal," says the statement.

As a result of the disruption, Lonmin has so far lost six days of mined production, representing approximately 300 000 tonnes of ore, or 15 000 platinum equivalent ounces.

"Consequently, it is unlikely that Lonmin will meet its full year guidance of 750 000 saleable ounces of platinum," it said.

The company's share price was down 5% to R85.50 at 3:40pm. Since Friday its share price has fallen 12.