Communities fear Lonmin merger

Communities have complained to the Competition Tribunal about a veil of secrecy around the proposed merger of Lonmin and Sibanye-Stillwater.

They warned that an already volatile situation would be stoked if 13.300 expected job losses were not mitigated.

This was submitted to the tribunal on Wednesday, the final day of its hearing on the proposed merger.

The merger is billed as the saving of Lonmin, which has been in financial dire straits for several years. But it will bring job losses, affecting local communities, including Marikana.

Affected communities asked the tribunal for tighter conditions to ensure the firm cannot shirk obligations under its social and labour plans (SLPs).

SLPs are development plans miners commit to as basic conditions for mining rights.

Louie Mogaki, for the Greater Lonmin Community, said there was no consultation on the merger with most of the community, and the companies had been secretive.

Mogaki said the deal would affect local communities.

Lonmin had been found to be noncompliant with its SLPs and failed to deliver the 5,500 houses it committed to a decade ago. Earlier in 2018, it applied to the department of mineral resources to be allowed to scale down its commitments due to its financial constraints.

Sibanye committed to taking on all outstanding SLP obligations from Lonmin, but the community was distrustful.

Louis Snyman, for Marikana women’s group Sikhala Sonke, said there was a growing culture of failure to fulfil SLPs, with only 30% of companies compliant.

Sikhala Sonke asked for merger conditions relating to SLPS to be more specific so the companies could be held to account. It asked for Lonmin to withdraw its application to reduce its commitments, given that it would be in a better financial position after the merger.