[miningmx.com] – THE Association of Mineworkers & Construction Union (AMCU) said the South African government ought to confiscate the mining licence of Lonmin after the UK miner said it may be forced to shut if shareholders did not support a $400m recapitalisation plan.
In an article by Business Report and Reuters, the union’s treasurer, Jimmy Gama, is quoted to have said that the government ought to hold Lonmin responsible.
“We believe the government is not doing its best to ensure the industry is stabilised. It is struggling because for years firms have been allowed to do things that are not in line with sustainability of the sector,” he said.
Lonmin will detail a proposed $400m rights offer on November 9 and said in a circular to shareholders that failing to secure the funds would also affect refinancing of debt – a development that would sink the company threatening more than 35,000 jobs.
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