JOHANNESBURG, Dec 12 (Reuters) – South Africa-focused platinum miner Lonmin is confident of submitting a plan to build workers’ housing that meets government requirements, it said on Monday, after President Jacob Zuma threatened to revoke its mining permit if it failed to do so.
Zuma’s warning on Sunday piles pressure on the company to spend more on workers’ housing at a time when it is cutting costs after being saved from the brink of collapse last year by a deeply discounted $400 million equity cash call.
To secure a mining licence, mining companies must submit a plan for housing and living conditions for their workers, many of whom come from former “homelands”, far from the mines, where blacks were forced to live in South Africa’s racist past.