IFC is working platinum producer Lonmin Plc to deepen the development impact of the company’s platinum mining operations in South Africa. The goal is to build a long-term relationship with local communities and demonstrate the effects of sustainable development.
In March, IFC provided $100 million standby senior loan to Lonmin, together with the option for IFC to buy up to $50 million in Lonmin shares. Lonmin will use most of the cash to help black South Africans increase involvement in their operations and help improve social and economic conditions of communities near their operations.
With IFC’s guidance, Lonmin aims to create 5,000 jobs over the next three years in the Northwest region of South Africa, many of these at smaller and black-owned enterprises. The company also plans to add 20 new black-owned suppliers to those that it currently uses and raise the number of women in its work force to 10 percent over the next two years from 4 percent currently.
The program doesn’t stop with creating jobs and empowering women. Lonmin also plans to construct 6,000 new houses and convert all its hostels into family-living flats., allocate at least 40 percent of the construction work to locally owned black-owned businesses, boost HIV testing, and implement 48 community development projects to improve the lives of people in the community.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
