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Lonmin could lose mining right if it fails to submit compliant housing plan‚ Zuma warns

A compliant housing plan will be requested from mining group Lonmin‚ failing which immediate action in the form of suspension or cancellation of its mining right will be taken‚ President Jacob Zuma cautioned on Sunday. 

Providing an update on the steps taken by departments to implement recommendations made by the Farlam Commission of Inquiry into the 2012 Marikana massacre‚ Zuma said that audit inspections may also be conducted at the mine‚ on a bi-monthly basis to ensure compliance‚ and administrative action taken where necessary.

He said a report from an inspection carried out on 25 June 2015 indicated that Lonmin had completed the conversion of all their hostels‚ namely 776 family units and 1‚908 single apartments by December 2014‚ as per the Mining Charter requirements.

Prior to the Commission’s findings‚ Lonmin was directed to amend their Social and Labour Plan and the company had submitted a revised Plan during October 2014‚ in which they had addressed the housing needs by committing to build Infill apartments‚ which apartments would replace the 5‚500 houses committed to‚ as the majority of employees indicated that they are interested in rental accommodation.

 “However‚ the revised SLP is broad and without clear timelines on building houses and Lonmin has been directed‚ on 23 September 2016‚ to revise this plan to address the living and housing conditions of mineworkers.

“An inspection by the DMR Acting Director-General and delegation on 7 October 2016 revealed that Phase one at the Karee Housing Estate was completed and comprises 100 family units and 225 bachelor units built by Lonmin.

“These apartments are not occupied yet‚ as final touches are being done and will be allocated by January 2017. The next phase is in progress and should be finalised by the end of 2017‚” Zuma stated.

“However‚ progress is slow‚ compelling the department to contemplate sterner measures. The Department of Mineral Resources intends to take further action‚” he added.

He said the Department would be finalising a regulation compelling mining companies to immediately publicise their Social and Labour Plans‚ as well as their annual compliance reports and implementation plans‚ as well as evidence of holding meetings with stakeholders at least quarterly.

The Department would also continue to engage with Lonmin as part of monitoring progress and that capacity to this effect was being strengthened.

 

 

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