We (Lonmin, the Company) are one of the world’s largest primary producers of PGMs, sustaining, directly and indirectly, the livelihoods of over 150,000 people. We are a fully integrated mine-to-market producer with the capacity to mine, concentrate, smelt and refine platinum group metals (PGMs). In 2013, we produced 1,404,603 PGM ounces in concentrate.
Our Mining Division comprises 11 shafts, located at Marikana on the Western Limb of South Africa’s Bushveld Complex, one of which, the K4 Shaft, was placed on care and maintenance in September 2012. We own an additional mine in Limpopo Province.
Alongside our mining operations, our Process Division comprises eight Concentrators in total (with one UG2 concentrator currently being refurbished), a Smelter and a Base Metals Refinery (BMR) situated in Marikana and a Precious Metals Refinery (PMR) situated in Brakpan, Gauteng. Our operational head offices are located in Johannesburg, South Africa and we also have offices in London, United Kingdom.
We have a joint venture over an adjoining property known as Pandora, where we manage mining and processing activities. We are also exploring for PGM deposits around the Sudbury Basin in Canada in joint ventures (JVs) with Wallbridge Mining Company Limited and Vale S.A, in Northern Ireland and in two areas in South Africa, Vlakfontein and Loskop, on the Eastern Limb, the latter in a JV with Boynton Platinum.
We have a relatively shallow ore body, which gives us a distinct cost advantage, and a well-developed ore reserve position, with resources of 175.2 million troy ounces of PGMs and 41.3 million ounces of reserves. Our mining licence for core operations runs to 2037 and is renewable to 2067, and our life of mine is currently estimated at 50 years.
We have a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. Our largest shareholders are Glencore Xstrata Plc (24.50%), Prudential Plc (7.55%), the Old Mutual Investment Group (8.34%) and Investec Asset Management (Pty) Ltd (6.06%).
We employ 28,379 full-time employees and 10,042 full-time contractors (year ending 30 September 2013). The communities that fall within a 15km radius of our Marikana operations make up a region known as the Greater Lonmin Community (GLC), with a resident population estimated at approximately 85,000. We are also active in several communities around our PMR in Brakpan, our Limpopo operations and in various labour sending areas, such as the Eastern Cape.
The Lonmin Charter
The Lonmin Charter links our performance to the success of our relationships with the GLC.Download Charter
In the North West Province, where our major mining operations are situated, mining accounts for an estimated 33.6%* of provincial gross domestic product.
- *This is according to a study of our economic footprint completed during the 2013 financial year, discussed in the case study: Measuring the extent of Lonmin’s economic footprint.
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