* Deadly precedent set in previous sackings
* Company may issue new shares to shore up finances
By Sherilee Lakmidas
JOHANNESBURG, Aug 21 (Reuters) – The world’s third-biggest
platinum producer, South Africa’s Lonmin, on Tuesday backed down
from its threat to sack 3,000 striking mine workers, fearing the
move could provoke more violence after police last week shot
dead 34 miners in scenes reminiscent of apartheid bloodshed.
Most of the strikers, who faced a Tuesday ultimatum to
return, stayed off the job as police helicopters hovered over
Lonmin’s Marikana mine, about 100 km (60 miles)
northwest of Johannesburg.
Hit by lost production and revenues, the company said it may
issue new shares “to strengthen its financial
structure”.
Analysts have speculated the company may turn to
shareholders to raise new capital as it will reach its borrowing
limits at the end of next month.
Lonmin said about a third of its 28,000 workers at the
Marikana mine had returned to work. It had previously threatened
employees with immediate dismissal for ignoring its ultimatum.
The 3,000 strikers are mostly rock drill operators, who say
they should be paid more for their arduous underground work.
Continued…
