Johannesburg - Solidarity trade union expressed concern on Monday about looming job losses in the mining sector, saying platinum producer Lonmin has issued a notice of possible retrenchments.
"While Statistics South Africa last week announced that the mining industry showed a loss of 32 000 jobs in the third quarter, the third biggest primary platinum producer, Lonmin, issued a notice to trade unions of possible retrenchments," said spokesman Jaco Kleynhans.
"According to this notice, Lonmin is experiencing an immense decrease in the need for platinum -- especially due to the drop in new car sales and car production.
"The situation in especially the mining industry has now reached an extremely concerning level in which looming job losses are being discussed at various mine groups," said Kleynhans.
Lonmin is the third largest platinum producer in the world.
Kleynhans said South Africa produced almost 80 percent of the world's platinum.
"But this commodity does not enjoy the same safe-haven status that gold has. The price depends largely on the physical need for platinum."
Its price had already dropped considerably in 2008, added Kleynhans. - Sapa
