Lonmin yesterday became the third platinum producer to announce that it has declared force majeure on supplier contracts.
Lonmin chief executive Ben Magara said the company was at an advantage compared with its peers as it had a R2 billion net cash position. “We are in a competitive position.”
Yesterday, Scaw Metal, the largest supplier of high chrome and forged grinding balls to the platinum belt, said the strike had affected its sales of steel wire, steel ropes and chain products.
Earlier this week Anglo American Platinum and Impala Platinum said they had issued force majeure notices to suppliers of goods whose contractual obligations could not be met due to the strike. They also said they might have to source the metal from the open market.
Magara said sourcing the metal in the open market was not necessary for Lonmin at this stage. – Dineo Faku