Lonmin‚ the world’s third-largest platinum miner‚ still has to build accommodation for 11 500 of its employees‚ but the weak platinum price is working against major housing investment‚ chief executive Ben Magara said on Friday.

There is a threat that Lonmin could forfeit its mining rights if it fails to meet its housing obligations. President Jacob Zuma has singled Lonmin out for failing to comply with its obligations.

Lonmin has 33 000 people working on its mines near Rustenburg‚ of which 25 000 are its employees. It has built accommodation for more than half of those‚ with 11 500 still “in need of decent accommodation“‚ Magara said at the media briefing.

Lonmin has converted its single-sex hostels‚ built apartments near them and donated land to the government to build houses‚ he said.

“We are 50% of the way there and the rest of our employees are living in areas where we feel they deserve better. But we need to be profitable.

“We unfortunately cannot build as fast as we want to because the platinum price is not there‚” he said.

The apartment programme‚ which cost R500 million over five years‚ entailed building accommodation on land near the converted hostels‚ where there are bulk services such as water and sewage‚ which Lonmin did not need permits to build.

Lonmin is in talks with the Association of Mineworkers and Construction Union (Amcu) to determine what is needed for the 11 500 employees living in sub-standard conditions in informal settlements around its mines.

The company plans to take the outcome of discussions with Amcu to the government as proof its intentions to provide its employees with housing.

Magara was clear that Lonmin could not on its own build housing for 11 500 people and needed assistance from the government and other parties.