In 2004, Lonmin's newly appointed chief executive Brad Mills set out to re-launch Saffy and Hossy, the group's new shafts, as mechanised shafts. The unions involved at Lonmin were naturally not happy about the idea. In addition, the skills required to maintain the sophisticated machines are not easily available in this country.
Since 2008 - when Mills left the company - it cost Lonmin R1.2bn to de-mechanise Saffy and Hossy. The Saffy shaft would reach its design production capacity of 200 000 tonnes of ore a month only in 2016, while Hossy is currently producing about 70% of its planned ore, Fin24 reports.
According to Lonmin's website, its operations consist of eleven shafts and inclines, situated in South Africa's Bushveld. The group has been granted a New Order Mining Licence by the South African government, which runs to 2037 and is renewable to 2067, reports Fin24
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