(Reuters) - Platinum producer Lonmin Plc (L:LMI) is set to cut more than 5,000 jobs as a result of a slump in platinum prices, Sky News reported on Thursday.
The announcement is expected on Friday along with its quarterly production report, the multimedia news agency said.(http://bit.ly/1IouHry)
Lonmin declined to comment.
The company, which employs more than 28,000 people, said in May that it plans to cut about 3,500 jobs at its mines in South Africa.
Lonmin might also review options to strengthen its balance sheet, which could include a rights issue and new debt facilities, the broadcaster said.
Reuters reported last year that the company aimed to cut about 21 percent of its South African workforce, that is up to 5,700 jobs, as part of a drive to restore profits after a five-month wage strike this year.
"The mining industry is going through another challenging economic cycle and we need to make difficult decisions to maintain the resilience of our business and protect employment," Chief Executive Ben Magara said in May.
It is still not clear if the present job cuts number above 5,000 could lead to any further strikes, Sky News said.
The company, which has been grappling with weak platinum prices, posted a pre-tax loss of $326 million last year and said it will be cutting costs further.
However, the South Africa's National Union of Mineworkers said in June that they would battle this mass retrenchment by major companies in the mining industry in the country.