Lonmin to cut jobs, close shafts amid platinum slump

Johannesburg-based Lonmin, the world’s third-biggest platinum producer, may cut as many as 6 000 jobs and close shafts as prices slumped to the lowest in six years.

Lonmin plans to close its Hossy and Newman shafts and idle three others, reducing annual output by 100 000 ounces, the Johannesburg-based company said in a statement Friday. The planned job cuts include contractors and staff who took voluntary redundancy packages offered in May, Lonmin said.

Mining companies in South Africa, which accounts for more than 70% of global platinum output, are looking to reduce costs as profit margins shrink with tumbling metal prices. Platinum has dropped 45% since the start of 2011.

“The consequence of these decisions will be that the remaining shafts will allow for a smaller, more sustainable and agile business,” it said. “Our objective is to save the majority of the positions in the company. All costs, not just labour costs, have to be reduced and productivity improved if the business is to be sustainable.”

Lonmin, which employed more than 28 000 people as of September 30, is making a loss before interest, tax, depreciation and amortisation, the company said.

“Our cost-minimisation plans are designed to improve this position as much as possible,” it said.

Lonmin will review its capital structure and will make an announcement by November, it said.

-Bloomberg

GRA schools small tax payers in Tarkwa Nsueam

Tarkwa (W/R), July 25, GNA - As part of measures to enhance the understanding of tax payers, Ghana Revenue Authority (GRA) has organised a day's training programme for small tax payers in the Tarkwa Nsueam Municipality.

Participants were taken through topics such as rent tax, proper record keeping and filing of returns.

Speaking at the function, Mr Charles Forson, Head of Communication and Public Relations of GRA in Western and Central regions, said the ultimate objective of sensitising the small tax payers was to attain some reasonable degree of voluntary tax compliance.

He said the GRA could only achieve this by constantly ensuring that tax payers understand what tax related issues.

He said GRA is also embarking on re-registration of businesses.

'Currently, GRA want to harmonise the system so that everybody will have one tax payer identification number,' he said.

Mr Victor Akogo, Senior Revenue Officer, GRA Tarkwa emphasised that rent tax has become a huge source of revenue potential for national development when well pursued.

He said residential and non-residential premises have sprung up and land lords and ladies are making enormous revenue from these investments.

Mr Akogo called on GRA staff to team up and educate stakeholders by providing them with the relevant information to ensure that fair tax assessments are raised and collected for national development.

GNA

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