Johannesburg, South Africa – 16 October 2013 – Lonmin is not a leader in executive pay, but it would take an average worker 325 years to earn the value of the CEO’s remuneration, according to a study released here.
Fin24 reports that the study also found that Lonmin was running an unsustainable operation.
In it, the Bench Marks Foundation (BMF) said Lonmin claimed to be the ‘best in class’ in sustainability, but that if this were true, platinum mining in South Africa was not environmentally, socially or politically sustainable.
Lonmin spokesperson Natascha Viljoen said that although Lonmin had been given a copy of the report, it had not participated in its compilation.
“We have started going through the detailed analysis to understand the context and veracity of the assumptions properly, but given the 10 year span and the changes in reporting methodology we need more time,” Viljoen said.
Once Lonmin had completed the review it would engage Bench Marks to discuss its interpretation of the data.
The study, on corporate social responsibility and mining, focused specifically on Lonmin.
It looked at Lonmin’s reporting of itself over a period of about 10 years, between 2003 and 2012, in its corporate social development reports (SDR), the BMF said in a statement.
The report focused on a limited number of areas, including the use of contract workers, wages, ‘social capital’ reporting, and housing programmes.
According to the report, the country’s platinum mining industry had rapidly grown to 30% of the whole mining industry’s contribution to GDP from 10% 15 years ago.
“After the 1990s, it experienced an extended period of extreme profitability,” BMF said.
“Since 2008, profitability has been significantly lower, prompting cuts in Lonmin’s social labour plans and retrenchment plans at Anglo Platinum.”
Contract workers in the sector numbered around 30% of the workforce. The gold mining sector by comparison used between 10 and 15% contract labour. "Since 2002, 20 to 25% of Lonmin’s workforce has been contract workers, and the proportion grew to over 30% in response to the 2008-2009 crisis,” the report found.
Source: Fin24. For more information, click here.