Lonmin 2008 Web-based Sustainable Development Report

Lonmin Plc
Web-based Sustainable Development Report
For the year ending 30 September 2008
Focused on
Operational Performance

01 Message from our Chief Executive Officer
02 Lonmin Charter
03 Safety and Sustainable Development Policy
04 About this Report
04 Report content
04 Report boundaries and report
completeness
04 Reliability and accuracy
07 Assurance Statement
09 Lonmin at a Glance
11 Summary of our Performance against our
Targets
14 The Business Case for Safety and Sustainable
Development
15 Governance of Sustainable Development
15 Introduction
15 The Board
16 The Board Committees
18 The Board Committees and sustainability
18 The Lonmin Charter and Safety and
Sustainable Development Policy
18 The Safety and Sustainable Development
Management Standards
19 External organisations and public policy
positions
20 Management Systems
20 Auditing and assurance
20 Stakeholder engagement and reporting
21 Stakeholder Engagement
21 Our approach
22 Feedback from our stakeholders
25 Risks or issues that are material to our
stakeholders
25 Risk Management
25 Our approach
25 Our risks
35 Creating Wealth
35 Introduction
35 Direct economic impacts
37 Indirect economic impacts
39 The Platinum Group Metals market
40 Product responsibility
41 Upholding Ethical Business Practices
41 Our approach
42 Our performance
44 Respecting and Valuing Fundamental Human
Rights
44 Our approach
45 Our performance
48 Eliminating Fatalities and Serious Injuries
51 Health
51 Managing workplace health risks
52 Health care delivery
53 Eliminating Noise Induced Hearing Loss
55 Managing HIV/AIDS in the workplace and in the
Greater Lonmin Communities
57 Our Employees
57 Introduction
58 Empowering Historically Disadvantaged South
Africans
61 Attracting and Retaining a Skilled Workforce
64 Availability and Affordability of Housing for our
Employees
64 Our approach
65 Our performance
67 Environment
67 Introduction
68 Management systems
70 Accessing and Managing Energy Resources
72 Accessing and Managing Water Resources
74 Reducing our Impacts on Air Quality
74 Our approach
74 Our performance
77 Reducing our impact on climate change
78 Responsible Materials Stewardship and Waste
Management
78 Our approach
79 Our performance
81 Responsible Land Management and
Biodiversity Conservation
81 Our approach
81 Our performance
84 Uniting with our Communities
84 Introduction
84 Our approach
86 Our performance
93 Implementing the International Council on
Mining and Metals Principles
96 Data tables
98 Reporting Against Global Reporting Initiative
Indicators
106 Acronyms
107 Definitions
113 Feedback on 2008 Sustainable Development
Reports
Lonmin is the world’s third largest primary
producer of Platinum Group Metals. Our producing
assets are all based in South Africa, which
currently contributes nearly 80% of global
Platinum production.
We welcome responses to this Web-based Sustainable
Development Report and the Summary Sustainable
Development Report, to ensure that our reporting
meets your expectations. Please either complete the
online feedback form on www.lonmin.com or in the
appendix of this report or send feedback or requests
for further information to:
Rob Gurner
Investor Relations Manager
Lonmin Plc
4 Grosvenor Place
London
SW1X 7YL
Tel: +44 (0) 20 7201 6050
Rob.Gurner@lonmin.com

01
Reporting is a critical component of engagement with our stakeholders
and is fundamental to ensuring that we respond to relevant risks and
opportunities as they relate to the sustainable development of our
business. Our reporting for financial year 2008 comprises both a
Summary Sustainable Development Report as well as a web-based
version which provides a more comprehensive coverage of sustainable
development in the Company.
This year’s report, as in previous years, focuses on the risks and
issues that are material to the Company and our stakeholders. We
have done this using the guidance of the Global Reporting Initiative’s 2006
Sustainability Reporting Guidelines and the Mining and Metals Sector
Supplement (GRI). We are committed to the values and principles
reflected in our reports and believe our success, as a business is
dependent on them.
Last year’s restructuring of the traditional safety, health, environmental
and community (SHEC) reporting structure to one of safety and sustainable
development has resulted in a number of positive impacts. Our SHEC
Policy was revised to the Safety and Sustainable Development Policy
outlining our business commitments. The importance and priority of
safety is well understood by our employees and contractors as reflected
in the “My Life at Lonmin” survey that was undertaken this year.
Sustainable development, in general has experienced visible traction at all
levels allowing for a clear vision on our commitments to sustainable
development. In 2008, we have seen significant achievements in the fields
of safety and sustainable development as well as challenges faced by the
Company and those on an industry wide basis. I have highlighted some
of our key performances, challenges and strategies moving forward.
I deeply regret to report the deaths of three of our employees at
our operations in 2008. We are fully committed to eliminating fatalities
and serious injuries at all our operations. We have improved on our lost
time injury frequency rate (LTIFR) by 42% and aim to further improve
this rate in 2009 by 15%. Our HIV/AIDS prevention and education
programmes have had a noticeable impact, with a 38% reduction in
HIV/AIDS related deaths since 2006 as a direct result of early diagnosis
and intervention, education and effective treatment. In 2009, we have a
target to increase participation in our wellness programmes by 20%
and to enhance our peer educator training.
In 2008, we faced, along with the rest of South Africa, severe
electricity shortages and restrictions were placed on our electricity usage.
In response to the electricity supply shortages, we have identified and
implemented various short, medium and long-term management plans to
improve energy efficiency and secure necessary electricity for future
growth opportunities. We also regard water management as a high risk
issue. We have implemented extensive water management programmes
and in May of this year we signed the memorandum of agreement as a
participant in the Olifants River Water Resource Development Project
between the Republic of South Africa, the Joint Water Forum and other
mining industry peers to secure water for our future mining operations.
Cost of power, water and other consumables continue to present
challenges for the Company.
We have exceeded our target of 40% of management comprising
of Historically Disadvantaged South Africans (HDSA) by 2009 and in
terms of preferential procurement, our total procurement spend in 2008
with HDSA suppliers was 56.5%, surpassing our target of 50% by
2009. Additionally, the local supplier development programme as part
of the partnership with the International Finance Corporation (IFC) has
been successful, with 109 contracts to date being awarded to twenty
seven local suppliers, to the value of US$29.13 million. Community
development and engagement initiatives will be furthered in 2009 in line
with our vision of uniting with our communities to improve their quality
of life and to contribute to the transformation of South Africa’s
economic, social and environmental conditions.
Although we have made progress on our housing programme,
particularly in terms of stream lining our approach to the requirements of
our employees as well as addressing the aspect of affordability, we had a
disappointing year in this regard and we are not on track to deliver our
housing requirements by 2011. We are engaging with the Department of
Minerals and Energy as well as other stakeholders on a revised housing
strategy to address the current shortfall of housing for our employees.
We are pleased to announce that as part of the 2008 Nedbank
Green Mining Awards, our sustainable development efforts were widely
recognised. We were winners of both the environmental and socio-
economic categories, as well as runners up in both categories.
We are a Company with valuable assets, a good safety record and
strong performance on sustainable development. We have worked
hard over the years to build long-term strategies, embed a culture of
sustainable development and value based behaviour to ensure that
aspects relating to sustainable development are incorporated into
decision making processes across our operations.
As a member of the International Council on Mining and Metals
(ICMM), we fully support its goal of establishing a global sustainability
benchmark for the mining industry. As part of this commitment, we
support the Sustainable Development Framework and the public reporting
of our progress against the framework and our risks. In 2008, KPMG has
provided assurance on progress made against the requirements of the
framework. We would appreciate your opinions on our performance as
well as on our reporting to ensure that we acknowledge all relevant issues
raised by our stakeholders and address them effectively.
I would like to take this opportunity to extend my sincere
acknowledgement to all Lonmin employees and contractors for their
commitment and dedication to the Company. Finally, I would like to thank
Brad Mills, our former Chief Executive Officer (CEO), who was pivotal in
establishing and developing our industry-leading sustainability credentials.
Ian Farmer
Chief Executive Officer
I am pleased to introduce to you our
2008 Sustainable Development Report
which provides information on our
performance on the broader economic,
social and environmental impacts
of our business for the financial year
ending 30 September 2008.
Ian Farmer
Message from our

02
2008 Web-based Sustainable Development Report / Lonmin Plc
Lonmin Charter
Our Mission
To grow and build our
portfolio of high quality assets.
To deliver the requirements
of the South African broad-
based socioeconomic Mining
Charter and we welcome the
opportunity to transform our
business.
To build a value-based
culture, which is founded
on safe work, continuous
improvement, common
standards and procedures,
community involvement and
one that rewards employees
for high performance.
We are successful
when
Our employees live and work
safely and experience the
personal satisfaction that
comes with high performance
and recognition.
Our shareholders are realising
a superior total return on their
investment and support our
corporate sustainability values.
The communities in which we
operate value our relationships.
We are meeting our
commitments to all business
partners and our suppliers,
contractors, partners and
customers support our
Charter.
Our Values
Zero Harm
We are committed to zero
harm to people and the
environment.
Integrity, Honesty & Trust
We are committed ethical
people who do what we say
we will do.
Transparency
Open, honest communication
and free sharing of information.
Respect For Each Other
Embracing our diversity
enriched by openness,
sharing, trust, teamwork
and involvement.
High Performance
Stretching our individual and
team capabilities to achieve
innovative and superior
outcomes.
Employee Self-Worth
To enhance the quality of life
for our employees and their
families and promote self-
esteem.
We are Lonmin, a primary producer of Platinum Group Metals. We create value by
the discovery, acquisition, development and marketing of minerals and metals.
We respect the communities and nations that host our operations and conduct
business in a sustainable, socially and environmentally responsible way.
Sir John Craven
Chairman
October 2008
Ian Farmer
Chief Executive

03
Safety and Sustainable
Development Policy
Honouring our health and safety
values and sustaining an
environment that promotes the
safety, health and wellbeing of
our employees and their families,
contractors and the communities
where we operate.
Providing adequate and
appropriate resources to
implement effective management
systems and risk management,
based on valid data and sound
science, during all phases of our
operations to ensure the
reduction of risks and the
adoption of best practices.
Respecting and valuing the
fundamental human rights,
cultural heritage and indigenous
traditions of our employees,
communities and other
stakeholders where we operate.
Integrating safety and sustainable
development into the decision
making process during all
phases of our operations.
Upholding ethical business
practices, sound corporate
governance and transparency,
while meeting or exceeding
applicable legislation, standards
and other requirements.
Implementing the principle of
equal opportunity and equity
while maintaining an appropriately
skilled and diverse workforce.
Empowering our host
communities and improving their
quality of life by contributing to
their long term social, economic
and institutional development
and promoting the beneficiation
of our minerals.
Implementing effective material
stewardship to manage the
lifecycle of our products in a
socially and environmentally
responsible manner.
Promoting the sustainable use
of natural resources and the
reduction, re-use and recycling
of waste.
Preventing pollution and
environmental degradation in
order to reduce our impact on
the environment and the
communities where we operate.
Responding to climate change
and driving the reduction of
greenhouse gases by adopting
best practice technology,
alternative energy sources,
improved control systems and
management practices.
Promoting integrated land use
management and biodiversity
conservation by applying a
precautionary approach during
all phases of our operations,
including mine closure.
Maintaining transparent and
ongoing consultative relationships
with all stakeholders and
incorporating this engagement
into the decision making process.
Fostering the commitment of all
employees and contractors to
this policy through training and
awareness programmes.
Seeking continual improvement
to achieve a high level of
performance through a
framework of setting and
reviewing our policy, objectives
and targets.
Reporting publicly our
sustainable development
performance in accordance
with the International Council on
Mining and Metals Sustainable
Development Framework and
utilising the guidance of the Global
Reporting Initiative Sustainability
Reporting Guidelines.
To honour our Charter, to fulfil our Vision and to create sustainable value
for our stakeholders, Lonmin is committed to improving the quality of life
of current and future generations through the integration of economic
prosperity, social development and environmental protection by:
We are Lonmin, a primary producer of Platinum Group
Metals. We create value by the discovery, acquisition,
development and marketing of minerals and metals.
We respect the communities and nations that host
our operations and conduct business in a sustainable,
socially and environmentally responsible way.
Ian Farmer
Chief Executive
October 2008

04
About this Report
This year we have made use of a number of
formal reports to communicate our sustainable
development performance:
• The Summary Sustainable Development
Report, which provides a summary of our
sustainable development performance,
focusing on key strategic risks to the
Company, to the broader stakeholder group,
including our employees, business partners,
shareholders, government, suppliers,
contractors, industry specialists and non-
governmental organisations.
• This more extensive, Web-based Sustainable
Development Report provides detailed
information on our sustainable development
strategy and profile, management approach,
performance and case studies for those
requiring more in-depth information.
• Our 2008 Annual Report provides a synopsis
of our performance on sustainable development
and should be read as a complementary report
to the Sustainable Development Reports.
Report content
Timeliness
Our annual Sustainable Development Reports are
a reflection of our operational activities and covers
our performance for the financial year ending
30 September 2008, and has been prepared
following the guidance of GRI.
Materiality and stakeholder inclusiveness
The content of this Web-based Sustainable
Development Report has been largely defined by:
• sustainable development risks facing the
Company;
• taking into consideration interests and
expectations from a range of stakeholders
obtained from various engagement initiatives
and reporting on risks that would
substantively influence their perceptions and
decision;
• taking into account legislation and issues that
society at large consider relevant to our
operations; and
• reporting best practice.
The Summary Sustainable Development
Report in turn provides information pertaining to
our risks as identified by the Company and by our
stakeholders. We have compiled the reports
conscious of the fact that our stakeholder groups
range from employees, local communities,
shareholders and contractors to non-government
organisations, unions, socially responsible
investment analysts and governments.
Sustainability context
We have endeavoured to clearly outline our
approach to sustainable development in a local
and global context. All the sections are aligned to
the sustainable development strategy as well as
the risks that were identified. Where necessary,
we have referenced our performance data to
global and national sustainability initiatives and
principles.
Balance and clarity
The reports reflect a balanced approach,
highlighting positive and negative aspects. We
have endeavoured to present data and
information in a clear and unambiguous manner
to ensure that the information in our report is
readily understandable and accessible to our
stakeholders.
Comparability
We are committed to presenting information and
data in a consistent manner to enable
comparative analysis. Trend information is
presented for all key sustainability information
from 2004 and where changes in data
measurement or collection methodologies have
occurred, we have stated the basis, calculation
and assumptions in the text. Where data has
been restated, it is indicated as such and the
implications are clearly described. Definitions of
indicators are provided in this report. All monetary
amounts reflected in the report are expressed in
United States (US) dollars, using a Rand/US$
exchange rate of R7.45/US$. A value of
1,366,307 Platinum Group Metals (PGMs)/oz
constitutes the basis of efficiency calculations
that include total production and part-processed
material.
We are committed to reporting publicly our sustainable development
performance as we realise that our performance is of interest to a diverse
range of both national and international stakeholders, including our
employees and contractors.

05
Report boundaries and report completeness
Our previous report reflected performance for
the twelve-month period 1 October 2006 to
30 September 2007, and since then there has
been no significant change in our size, structure,
ownership or products that would materially
influence the scope or boundary of this report.
We are confident that the report provides a
complete and balanced view of our performance
for the 12-month reporting period and does not
omit material information that would influence
stakeholder’s assessment of our operations.
The report boundary includes all Lonmin-
owned entities and those joint ventures or
partnerships over which we have exercised
management control during the twelve-month
period ending 30 September 2008 as per the
table on the next page. We do not report on
indicators, other than key employee data for our
head offices or satellite offices as the limited size
and impacts of these offices render them not
material to our reporting processes. The LTIFR is
material to our exploration activities, which are
wholly owned or managed by the Company. We
have not been in a position to report on the LTIFR
related to exploration in 2008 due to insufficient
data capturing systems in place.
Reliability and accuracy
Independent external assurance of our publicly
reported sustainable development performance is
a key element of our sustainable development
framework. External assurance supports the
integrity of our report content and has been
provided by KPMG over selected parameters, the
application of the reporting principles as outlined
by GRI, as well as assurance relating to our
progress towards the alignment of our policies
and business practices with the ten principles of
the ICMM. We have identified and confirmed the
accuracy of our original sources of information
and provided evidence to support our
assumptions and calculations to the satisfaction
of our external assurer. The scope of the
assurance includes the Web-based Sustainable
Development Report and the Summary
Sustainable Development Report (see KPMG
External Assurance Statement page 07).
Application levels
Based on our own assessment of the report content against the criteria provided in the GRI application
levels, we declare that in combination, the Web-based Sustainable Development Report and the
Summary Sustainable Development Report fulfil the requirements of a B+ application level. The GRI
table referencing information per GRI indicator is contained within the section “Reporting Against Global
Reporting Initiative Indicators.”
About this Report (continued)
ReportExternallyAssured
2002
in
accordance C C+ B B+ A A+
Self Declared
Third Party
Checked
Global Reporting
Initiative Checked
OptionalMandatory

06
Scope of the report and assurance statement
Assurance on
Entities Ownership Components Report scope selected data Data reported
Exploration Wholly owned and Gabon Employee data
managed by Lonmin Kenya
Ireland
Joint Ventures, with Lonmin Loskop
as managing partner Tanzania
Joint Ventures and not Canada
managed by Lonmin

Operations Wholly owned and managed Lonmin 100%
by Lonmin Platinum
Marikana
Precious
Metal Refinery
(PMR)
Lonmin
Platinum
Limpopo
Akanani*
Joint Ventures, with Lonmin Pandora 100% data
as managing partner Joint reported as
Venture part of Lonmin
Platinum
Marikana
Dwaalkop 100% as part
Joint of Lonmin
Venture* Platinum
Limpopo
Head offices Johannesburg Employee data
London

* Activities on site are limited and mine is not operational.
About this Report (continued)

07
KPMG Assurance Statement
Independent assurance provider’s report to Lonmin Plc (Lonmin) on the Lonmin Web-based Sustainable
Development Report 2008 (the Report)
Introduction
We have completed our independent assurance engagement of the Report, for the year ended 30th September 2008
with respect to the following aspects of the Report:
(a) To express reasonable assurance on the following Sustainable Development (SD) Performance Indicators:
• Work Related Fatalities in 2008 (page 48); Green House Gas (GHG) Emissions from Direct and Indirect sources
(page 71); and Total Energy Consumption (page 71).
(b) To express limited assurance on the following:
• SD Performance Indicators: % of Operational Discretionary Spend on HDSA suppliers (page 37); % of
Operational Discretionary Spend on GLC suppliers (page 38); Employee Lost Time Injury Frequency Rate (LTIFR)
(page 49); Number of Noise Induced Hearing Loss Cases Compensated (page 53); Number of Pulmonary
Tuberculosis Cases (page 56); Average Tonnes of Sulphur Dioxide (SO2) Emissions per Day (page 75); and Dust
Fallout Results for Marikana and Limpopo operations (page 74-75); Total Fresh Water Intake (page 72); Tonnes of
Hazardous Waste disposed of to Landfill and Incineration (page 97); and Tonnes of General Waste to Landfill
(page 97);
• Management’s assertions with respect to the application of the 2006 Global Reporting Initiative (GRI) G3 Part 1
Principles within the Report, (page 04-05); and
• The International Council for Mining and Minerals (ICMM) Subject Matter 1, as described in the ICMM Sustainable
Development Framework: Assurance Procedure, May 2008, relating to management’s assertions with respect to
Lonmin’s progress towards alignment of policies and business practices with the ICMM’s Ten Principles of
Sustainable Development (page 93).
The ‘About this Report’ section of the Report (pages 04-05) highlights key issues in relation to limitations in the
nature, timing and extent of the reported SD performance information. It is important to understand the ‘selected 2008
SD performance indicators’ and related statements in the Report, in the context of these limitations.
The internally developed Lonmin reporting definitions, the 2006 GRI G3 Sustainability Reporting Guidelines, and the
ICMM Sustainable Development Framework: Assurance Procedure, were used as criteria for the assurance over the
selected sustainability performance information.
This report is made solely to Lonmin in accordance with the terms of our engagement. Our work has been
undertaken so that we might state to Lonmin those matters we have been engaged to state in this report and for no
other purpose. We do not accept or assume responsibility to anyone other than Lonmin, for our work, for this report, or
for the conclusions we have reached.
Responsibilities of Directors
Lonmin’s directors are responsible for the preparation of the Report, and the information and assessments contained
within it, for determining the company’s objectives in respect of sustainable development performance, including the
identification of stakeholders and material issues, and for establishing and maintaining appropriate performance
management and internal control systems from which the reported information is derived.
Responsibility of the independent assurance provider
Our responsibility is to provide our conclusions based on our independent assurance engagement, performed in
accordance with the International Standard on Assurance Engagements (ISAE 3000) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information. This standard requires, inter-alia, that the assurance provider
complies with the appropriate requirements of the IFAC Code of Ethics for Professional Accountants such that their
independence is not compromised and the assurance team members collectively possess the necessary professional
competencies. Our work was carried out by a multi-disciplinary team of safety, health, environmental and assurance
specialists with extensive experience in sustainability reporting in the mining sector.

08
KPMG Assurance Statement (continued)
Summary of the work performed
Our work performed depends on our judgment, including the assessment of the risks of material misstatement of the
2008 selected SD performance indicators and disclosures, and our assessment of the internal controls relevant to the
company’s preparation and presentation of the sustainability information in the Report. Our procedures were designed to
gather sufficient appropriate evidence to determine that the 2008 selected SD performance information is not materially
misstated.
Our work consisted of:
• Testing of process and systems in place at corporate level and business unit level to generate, collate, aggregate and
report the SD performance indicators for the year;
• Conducting site visits to the Marikana Operations, and Johannesburg Corporate Office;
• Review of internal audit work related to the selected SD performance indicators conducted for the Marikana,
Limpopo and PMR operations;
• Conducting interviews with management, at the sites and at corporate level;
• Conducting interviews with management at group level and a review of policies, procedures, systems and controls to
obtain an understanding of the consistency of the reporting processes in respect to the requirements of the ICMM’s
10 Principles of Sustainable Development and the application of the 2006 GRI G3 Part 1 Principles ; and
• Consideration of whether management’s assertions in the Summary Report and Report in respect of the application
of the 2006 GRI G3 Part 1 Principles are consistent with our findings and evidence obtained from our site and group
level work performed.
Where a limited assurance conclusion is expressed, our evidence gathering procedures are more limited than for a
reasonable assurance engagement, and therefore less assurance is obtained than in a reasonable assurance
engagement. We do not express any assurance in relation to the 2008 SD performance indicators in the Report not
included above. We believe that our work performed as set out above provides an appropriate basis for our conclusions,
expressed below.
Conclusion
Based on our work performed, in our opinion:
• The selected 2008 SD performance indicators set out in (a) above for the year ended 30 September 2008, are fairly
stated in all material respects;
• We have no reason to believe that, for the year ended 30 September 2008:
• the selected 2008 SD performance indicators set out in (b) above are not fairly stated in all material respects;
• management’s assertions relating to the application of the GRI G3 Part 1 Principles are not fairly stated in all material
respects on the basis of the 2006 GRI G3 Guidelines; and
• management’s assertions relating to the alignment of Lonmin’s business to the requirements of Subject Matter 1 are
not fairly stated in all material respects on the basis of the ICMM Sustainable Development Framework: Assurance
Procedure, May 2008.
KPMG Services (Pty) Limited
Per PD Naidoo
Director
Johannesburg
20 November 2008

Lonmin at a Glance
We have a scarce, valuable and lasting reserve
and resource base. All of our operations are
based in the Bushveld complex in South Africa,
which contains more than 80% of the world’s
known PGMs reserve base. We are one of only
three major integrated mine-to-market PGMs
businesses.
Final metal sales for the financial year 2008
were 726,918 oz of platinum and 1,401,371 oz of
total PGMs. These sales include 20,425 oz sold
as concentrate or other part-processed products.
We are listed on the London Stock Exchange,
with a secondary listing on the Johannesburg
Stock Exchange. Our South African headquarters
are located in Johannesburg, with our United
Kingdom headquarters based in London. Our
main operating subsidiaries, in which we have an
82% interest, are Western Platinum Limited and
Eastern Platinum Limited, which are located in the
North West Province of South Africa.
We operate two key business units:
1. Mining Division
Our mining operations comprise Marikana
mining in the North-West Province of South
Africa and Baobab Shaft in the Limpopo
Province. We also manage the Pandora Joint
Venture to the east of our Marikana
operations. Our Marikana mining operations
currently contributes around 92% of our
annual production. At both our operations,
we mine the Upper Group 2 and Merensky
PGMs-bearing reefs.
2. Process Division
Our Processing Division, including eight
concentrators, a smelter and base metal
refinery (BMR) is located primarily in Marikana.
The PMR is located in Brakpan in the
Gauteng Province.
Other operations
Our two major acquisitions during the last few
years were Akanani and Limpopo, including the
Dwaalkop Joint Venture, all located in the
Northern Bushveld.
Exploration activities
We also have an extensive exploration portfolio
which includes the following projects:
• Kenya: Wholly owned and managed by
Lonmin.
• Canada: Joint ventures with Vale Inco and
Wallbridge Mining Company in the Sudbury
Basin, both of which are managed by these
partners.
• Tanzania: Joint venture with IMX Resources,
and managed by Lonmin.
• Gabon: Wholly owned and managed by
Lonmin.
• Ireland: Wholly owned and managed by
Lonmin.
• South Africa: Loskop joint venture with
Boynton and managed by Lonmin.
We are Lonmin, a primary producer of platinum group metals. We create
value by the discovery, acquisition, development and market minerals
and metals.
K3 Shaft at our Marikana operations

10
Percentage shareholding in our operations
Entity Companies Equity Partners
Marikana Mining Western Platinum Limited 82% held by Lonmin 18% Incwala
Process Division
Eastern Platinum Limited South Africa (UK) Limited Resources Pty Limited
Limpopo Messina Platinum Limited 100% held by 18% Incwala Resources
Western Platinum Limited Pty Limited in Western
Platinum Limited, thus 18%
indirect shareholding in
Messina Platinum Limited.
Akanani Metals Technology Incorporated 74% held by Metals 26% Incwala Resources
(wholly owned subsidiary Technology Incorporated Pty Limited
of Lonmin Plc)
Pandora Joint Venture Eastern Platinum Limited 42.5% held by Eastern 42.5% Rustenburg
Platinum Limited Platinum Mines Limited
7.5% Bapo Ba Mogale
Mining Company
Pty Limited
7.5% Mvelaphanda
Resources Limited
Dwaalkop Joint Venture Western Platinum Limited 50% held by Western 50% Mvelaphanda
Platinum Limited Resources Limited
Akanani
Limpopo
Marikana
Pandora
Pretoria
Johannesburg
Processing Capability
• Marikana – Smelter
and BMR
• Johannesburg – PMR
• Each processing facility
has capacity of 1.2 million
platinum oz
Resources and
Reserves
Akanani
Resources 21.9
Limpopo
Resources 22.5
Reserves 5.1
Marikana
Resources 101.5
Reserves 43.1
Pandora
Resources 7.7
Reserves 0.06
All Resources
Reserves figures are
on a Total Attributable
basis in million PGMs
oz (3PGE + Au)
Lonmin at a Glance (continued)

11
Summary of our Performance
against our Targets
The table below summarises our performance against our targets and outlines our targets going forward.
Issue Achieved Targets for 2008 and beyond Performance
Management systems We will achieve an average score of 3.7 We did not conduct an audit on
out of 5 on the SHEC Standards in 2008. the implementation of the SHEC
Standards during 2008 due to the
revision of the Standards, thus this
performance was not assessed.
New We will achieve Occupational Health and
target Safety Standard (OHSAS) 18001 management
system certification at all our operations by 2011.
We will maintain all current management All operations maintained ISO 14001
systems certification for the certification. OHSAS 18001
reporting year. certification at the Assay Laboratory
lapsed in 2008.
Our Limpopo operations and Shared In 2008, our Limpopo operations and
Services will achieve International Shared Services received
Standards Organisation (ISO) 14001 ISO 14001 certification.
certification in 2008.
We will receive zero fines and The provincial Department
prosecutions for the reporting year. of Agriculture, Conservation and
Environment issued a US$13,422.82
administration fine for proceeding to
construct a tailings facility without
receiving authorisation in terms
of the National Environmental
Management Second Amendment
Act 8 of 2004. This fine was duly paid.
Human capital We will comply with the principles In 2008, there has been
embodied in the United Nation no reported incident
Declaration for Human Rights. of violation of the principles.
On We will increase the literacy rate In 2009, literacy assessments
track of our employees to 50% by 2009. will be undertaken to verify
performance in this regard.
We will ensure that 40% of senior and In 2008, 42.3% of our senior
middle management comprise of and middle management
historically disadvantaged South African employees were HDSA.
(HDSA) employees by 2009.
Not We will increase female participation In 2008, although we increased
on in mining (in mining and processing the number of female employees to
track operations) to 10% by 2012. 6.1% in 2008, only 1.8%
are employed in core operations
(in mining).
Procurement We will increase our total discretionary In 2008, 56.5% of our total
spend with HDSA suppliers to 50% discretionary spend was attributed
by 2009. to HDSA suppliers.
New We will increase our total discretionary
target spend with HDSA suppliers to 63%
by 2010.
We are committed to continual improvement in our performance through
a framework of setting and reviewing our policies, objectives and targets.

12
against our Targets (continued)
Safety We will achieve zero fatalities at each In 2008, regrettably three fatalities
of our operations each year. occurred at our operations.
Two fatalities resulted from fall of
ground occurrences and the
third fatality resulted from an explosion
induced by drilling into a misfired
shothole in a steeply inclined workplace.
We will improve our LTIFR by 25%. As at the end of September 2008,
we have improved our LTIFR
by 42%.
New We will improve our LTIFR by 15% by
target 30 September 2009 (baseline year 2008).
Health We will have a minimum of 900 patients As at the end of 2008, we had 989
on anti-retroviral treatment (ART) by 2008. patients on ART.
New We will increase participation of patients
target in our wellness programme by 20%
by 2009.
New We will train one workplace peer educator
target for every 75 employees by 2009.
We will reduce our number of new In 2008, we have reduced our new
noise-induced hearing loss (NIHL) cases diagnosed NIHL cases by 62.2%
by 20% by 2008. from our 2007 baseline
year to 236 cases.
New We will reduce our number of new
target noise-induced hearing loss (NIHL) cases
by 30% by 2009 (2008 baseline year).
On All operations to implement a baseline Our mining and processing operations
track survey on occupational exposure hazards have baseline risk assessments,
and establish occupational hygiene occupational hygiene monitoring
monitoring and health surveillance and medical surveillance programs
programmes by 2009. in place. Risk review of significant
occupational hygiene hazards will
be conducted in 2009.

Andre Spohr, Mine Overseer at K3 Shaft
providing training to the work force on potential
safety hazards. Our ongoing safety training
programmes have been an important component
of our improved safety performance.

13
against our Targets (continued)
Environment On We will reduce our aggregate fresh In 2008, we have reduced our
track water intake by 15% per unit of aggregate fresh water
production (2007 baseline year) intake by 15.1% per unit
by 2012. of production.
On We will reduce our aggregate energy In 2008, although we have improved
track consumption per unit of production our aggregate energy consumption by
by 10% by 2012, thereby reducing 4.6% per unit of production, we have
greenhouse gas emissions by 5% increased greenhouse gas emissions
(2007 baseline year). by 6.7% per unit of production.
On We will reduce our quantities of waste In 2008, we standardised our waste
track disposed of to landfill by 15% measurement systems to a metric
(2007 baseline year) by 2012. of weight to enable more accurate
measurement of waste to landfill, thus
a direct comparison to the 2007
volumes is not possible.
We will not exceed the 600mg/m2/day In 2008, five exceedances of the
dust fallout rate for ambient dust 600mg/m2/day target were recorded
deposition in residential areas near at residential sites at our Marikana
our operations. operations. Due to the methodology
employed, cumulative fallout of all
external and internal dust sources
are recorded.
Housing Not on We will construct 5,500 houses within As a result of both extensive internal
track the greater Lonmin community and external consultation in 2008,
(GLC) by 2011. a decision was made that show houses
would be constructed initially, after which
the remainder of the houses will be
constructed in phases. We are engaging
with the Department of Minerals and
Energy as well as other stakeholders on
this revised housing strategy.
Not on We will convert all 114 hostel 29 hostel complexes have been
track accommodation into family and converted to date. Our housing strategy
bachelor accommodation by 2011. is in the process of being reviewed in
discussion with the Department of Minerals
and Energy and other stakeholders.
We will construct 80 houses within In 2008, the programme to design
Mooinooi Township by December 2008. and construct these houses was put
on hold, due to a shift in focus to
rental accommodation.
Community New We will spend 41% of our financial
target commitments on local economic
development projects as per the
Social and Labour Plan by 2009.
In order to measure our dust fallout and impacts on our community, we have extensive
monitoring systems in place across our operations and within our communities.
Anna Maseko, Boikenyo Matlala and Tintswalo Langa from Rekgonne Bapo
Special School within the Marikana GLC, work daily in their school gardens,
as part of the eco-schools programme.

The Business Case for Safety and
Sustainable Development
Sustainable development and a culture of safe production is embedded
in our business strategy to capture, build and grow the business for long
term success.
Our employees are the foundation to our business.
For the mining industry, sustainable development
does not only mean integrating social
development, prosperity and environmental
stewardship into a mine plan. It also considers
how a region will fare once the mine closes.
It is about creative solutions to social and
environmental challenges, and engaging
stakeholders. It is about going beyond complying
with the law, to take account of society’s needs.
The social business case
Our employees are the foundation to our business
and by investing in our employees’ wellbeing; we
are investing in the Company’s long-term future,
through enhanced attraction, retention and
employee morale.
The business case for empowering our host
communities and improving their quality of life is
clear – we cannot succeed as a business in
societies that fail. To this end, we continue to
endeavour to contribute to our communities’
long-term development and promote the
beneficiation of our minerals – in this way, we can
retain our licence to operate, innovate and grow.
Stakeholder engagement improves company-
community relations, and guides the Company
when taking decisions that affect the community.
The environmental business case
Producing PGMs while limiting damage to health
and the environment, and using resources more
efficiently is at the core of the sustainable
development business case for the Company. We
share global anxiety around environmental
degradation and resource scarcity, in particular
water and energy resources. We depend on these
resources in order to function. By adopting new
or cleaner technologies, we make production
processes more efficient, reduce costs and
decrease environmental degradation. We also
understand that our operations can affect the
quality of life in the communities where we
operate.
The effective adoption of sustainable
development principles within the Company
should increase profits. We stand to enhance
our brand, gain an edge in the market, increase
customer loyalty and build opportunities for
future growth.
Business Benefits of Sustainable Development
Potential to enhance profitability
• Improved shareholder value.
Market advantage
• Stronger brand and image;
• Customer loyalty;
• Attracting and retaining the right talent.
License to operate
• Improved reputation with all stakeholders;
• Reduced costs of compliance.
Quality management
• Improved risk management;
• Employee motivation and commitment;
• Increased intellectual capital.
Eco-efficiency
• Reduced costs;
• Optimal investment strategies.
Resources
• Access to capital;
• Access to natural resources, including land.
14

15
Governance of Sustainable Development
Introduction
The Company is fully committed to the highest
standards of corporate governance which, it
believes helps create the business integrity
needed to deliver robust and sustainable business
results. The governance of the Company is
underpinned by the values set out in the Lonmin
Charter and supported by the Lonmin Code of
Business Ethics. In terms of governance of
sustainable development, the Lonmin Safety and
Sustainable Development Policy defines our
commitments. Standards and guidelines form the
foundation of the management system for
implementation of these sustainable development
commitments. As a member of the ICMM, its ten
principles are integral to our sustainable
development governance.
The Board
The Company is led and controlled by a unitary
Board of Directors. The Board currently has ten
members, comprising an independent non-
executive Chairman, seven independent non-
executive Directors, and two executive Directors.
An independent Director is a person who is
independent in character and judgement and free
from relationships or circumstances which could
affect their judgement. All non-executive Directors
at the Company are regarded as independent by
the Board, as per the requirements of provision
A.3.2 of the Combined Code.
The Board meets regularly, normally on six
occasions during the year and more frequently as
required, including two meetings in South Africa.
The Board provides the entrepreneurial
leadership, direction and control of the Company;
is the custodian of the Company’s strategic aims,
vision and values; and assesses whether the
necessary financial and human resources are,
and will continue to be, in place to enable the
Company to meet its objectives. It has a formal
schedule of matters reserved for its decision,
the most material of which fall into the key
areas listed below:
• Strategy and management;
• Financial reporting and control;
• Social, environmental and ethical matters;
• Contracts and financial commitments;
• External communications;
• Corporate governance;
• Remuneration; and
• Board composition and membership.
Whilst all Directors have equal responsibility in
law for managing the Company’s affairs, it is the
role of executive management to run the business
within the parameters laid down by the Board and
to produce clear, accurate and timely reports to
enable the Board to monitor and assess
management’s performance. The executives
make full use of the expertise and experience that
the non-executive Directors bring from their
business careers. The Chairman routinely holds
discussions with non-executive Directors without
the executive Directors being present.
Chairman and Chief Executive
The roles of Chairman and Chief Executive are
clearly separated and set out in writing. The
Chairman, who is an independent Director, is
responsible for leadership of the Board, ensuring
its effectiveness and setting its agenda, and for
ensuring that there is effective communication
with all shareholders. The Chairman also
facilitates the effective contribution of all Directors
and ensures that there is a constructive
relationship between the executive and non-
executive Directors. The role of the Chief
Executive is to provide leadership to the executive
team in running the business, to develop
proposals for the Board to consider in all areas
reserved for its judgment and oversee the efficient
and effective implementation of Board-approved
actions.
Board balance
The Board believes that it has sufficient members
to contain a balance of experience and skills and
to manage succession issues but without being
so large as to be unwieldy. The quality of the
individual Directors and the Board’s composition
is a key contributor to the Board’s effectiveness,
with no one individual or group of individuals
being able to dominate the decision-taking. The
Board keeps the membership of its Committees
under review, to ensure gradual refreshing of skills
and experience. It is satisfied that all Directors
have sufficient time to devote to their roles and
that it is not placing undue reliance on key
individuals. The Company has previously
implemented a Board performance evaluation
process which is designed to identify whether the
Board possesses the relevant skills, knowledge
and experience to fulfill its mandate, so enabling
it to manage succession issues.
We are committed to upholding ethical business practices, sound
corporate governance and transparency, while meeting or exceeding
applicable legislation, standards and other requirements.

16
Governance of Sustainable Development (continued)
Engaging with shareholders
The Directors have regular discussions with
institutional shareholders following which detailed
feedback from these visits is shared with the
Board. In addition, the Chairman routinely offers
key shareholders the opportunity of meetings with
either himself, the Deputy Chairman or the Senior
Independent Director to discuss governance,
strategy or any other matters shareholders wish
to raise. A number of such meetings were held
with shareholders during the financial year and
general areas of discussion with institutional
shareholders included governance, strategy,
performance and remuneration. The Combined
Code urges companies to use the Annual General
Meeting to communicate with private
shareholders and to encourage their participation.
The Board has followed these principles for many
years. The Board, as a matter of course, provides
shareholders the opportunity to vote on every
substantially different issue by proposing separate
resolutions and uses electronic poll voting on all
resolutions. This enables the votes of all
shareholders to be taken into account, whether
they are able to attend the meeting or not, as well
as providing a more discreet and democratic
method of voting at the meeting. The results of all
poll votes are displayed on our website, together
with a range of investor relations materials,
including up to date information on the Group’s
activities, copies of all presentation materials
given to institutional shareholders and further
explanation of the matters contained in the annual
reporting documents.
Additionally, all shareholders have the right
under the United Kingdom’s Companies Act 2006
to requisition resolutions to be moved at the
Company’s Annual General Meeting provided the
requisition is made by 100 or more shareholders
or such number of shareholders who hold
together not less than 5% of the company’s
voting share capital. In certain circumstances, the
Company is required to issue a circular relating to
such a resolution to all shareholders.
There were no significant issues raised
relating to economic, environmental and social
performance at the Annual General Meeting in
2008. Queries raised during the Annual General
Meeting included those relating to smelter
shutdowns and operational reliability in terms of
equipment and machinery.
The Board Committees
The Board has established four Committees and
provides sufficient resources to enable them to
undertake their duties. The Board Committees
meet quarterly, as a minimum basis and reviews
the Company’s performance. The table on the
next page summarises the committees, the
composition of each committee and the mandate.
Detailed information on the Board Committee’s
terms of reference and governance policies can
be accessed in our 2008 Annual Report.
The Company is fully committed to the highest
standards of corporate governance which we believe
helps create the business integrity needed.

17
Committees of the Board
Committee’s of the Board Composition Mandate
Audit and Risk 3 non-executive Directors The primary purpose of the Audit and Risk Committee, is
1 non-executive Chairman as follows:
• To monitor the integrity of the Company’s financial
statements and announcements relating to its financial
performance and reviewing significant financial reporting
judgments;
• To keep under review the effectiveness of the Company’s
internal controls and risk management systems;
• To monitor the effectiveness of the internal audit function
and review its material findings; and
• To oversee the relationship with the external auditors,
including agreeing their remuneration and terms of
engagement, monitoring their independence, objectivity
and effectiveness and ensuring that policy surrounding
their engagement to provide non-audit services is
appropriately applied.
Nomination 3 non-executive Directors The primary purpose of the Nomination Committee, is
1 non-executive Chairman as follows:
• To ensure a regular, rigorous and objective evaluation of
the structure, size, composition, balance of skills,
knowledge and experience of the Board is undertaken;
• In consultation with the Chairman, recommend any
proposed changes to the composition of the Board and
to instigate and manage the recruitment process;
• To oversee the Company’s adherence to applicable legal
and regulatory requirements in relation to the above; and
• To oversee compliance with the Combined Code and
other applicable corporate governance regulation.
Safety and Sustainability1 1 non-executive Chairman The primary purpose of the Safety and Sustainability
2 non-executive Directors Committee, is as follows:
1 executive Director • To provide advice to the Board and, as necessary to the
Audit and Risk Committee, on safety and sustainability
matters;
• To assess our effectiveness in managing these risks;
• To review significant safety and sustainable development
incidents and performance indicators; and
• To report to the Board on developments, trends and/or
forthcoming significant legislation on safety and
sustainable development matters which may be relevant
to the Company’s operations, assets or employees.
Remuneration 3 non-executive Directors The primary purpose of the Remuneration Committee,
1 non-executive Chairman is as follows:
• To make recommendations to the Board on the
Company’s framework of executive remuneration;
• To determine individual remuneration packages within
that framework for the executive Directors and certain
senior executives;
• To oversee the administration of the Company’s incentive
schemes;
• To review Directors’ expenses; and
• To oversee the Company’s executive pension
arrangements, all of which it carries out on behalf of the
Board.
1 The Committee comprises a number of senior executives in addition to those indicated.

18
The Board Committees and sustainability
In 2008, the Safety and Sustainability Committee
of the Board met four times. Membership
comprises two non-executive Directors and one
executive Director and is chaired by an
independent non-executive Director. A number of
senior executives also regularly attend these
meetings, including the Chief Operating Officer,
Mahomed Seedat and Vice President
Sustainability, Marinda van der Merwe.
The Remuneration Committee of the Board
believes that participation in a short-term incentive
scheme enhances the focus of the executive
Directors and key senior executives by providing a
meaningful incentive to outperform and helps
ensure that the management team is
appropriately focused on business critical
outcomes. The table below outlines performance
related pay for executive Directors in 2008.
The Lonmin Charter and Safety and Sustainable
Development Policy
The Lonmin Charter and the Lonmin Code of
Business Ethics provide a framework for all
business practices. During the reporting period,
the Safety and Sustainable Development Policy
(previously SHEC Policy) was approved by the
Chief Executive Committee, the senior
management grouping in the Company, to align
our commitments with the principles of the
organisations we support.
The Safety and Sustainable Development
Management Standards
The Safety and Sustainable Development
Management Standards (previously SHEC
Standards) clearly outline the minimum operating
requirements for the Company. The requirements
drive us to deliver on policy commitments in a
methodical and consistent way. They are aligned
with the requirements of South African National
Standards, ISO 14001 and ISO 9001 and OHSAS
18001. Although accountability for safety and
sustainable development remains that of line
management, the Safety and Sustainability
Departments provide strategic direction, technical
support and provide assurance of compliance to
standards through a range of internal and external
auditing functions.
Significant issues discussed at the meetings of the
Safety and Sustainability Committee in 2008
• Incident Cause Analysis Method reports on fatalities
occurring within reporting period;
• Safety performance and benchmarking of our
performance;
• Performance of Lonmin – IFC Technical Assistance
Partnership Programme;
• Social and labour plan performance;
• Changes in community development structures;
• Level three environmental incidents;
• Environmental risk overview;
• Sustainable development reporting in terms of GRI
and assurance;
• ICMM assurance protocol;
• Evaluation of the performance of the committee and
the chairman of the committee.
Performance related pay for executive Directors
Percentage of bonus Actual payment
opportunity on offer for the year (percentage
for target performance of bonus opportunity)
Safety and Sustainable Development Matters (15%)
Safety
– Level 3 Injuries 2.5% 3.75%
– LTIFR 2.5% 3.75%
Community 5.0% 0.00%
Environment
– Electricity – percentage reduction in electricity consumption 2.5% 0.00%
– Water – percentage reduction in fresh water intake 2.5% 0.00%
Total 15.0% 7.50%

19
Management system implementation
Operations OHSAS 18001 ISO 14001 ISO 9001
Shared Business Services
Marikana Mining
Limpopo Mining
Concentrators
Smelter
BMR
PMR
Assay Laboratory
Training Academy
development. Our previous CEO chaired the
ICMM, and Vice President Sustainability Marinda
van der Merwe, chaired the Executive Working
Group. Through our participation in the ICMM, we
also endorse the Extractive Industries
Transparency Initiative. The Extractive Industries
Transparency Initiative is a coalition of
governments, companies, civil society groups,
investors and international organisations which
aims to strengthen governance by improving
transparency and accountability in the extractive
sector. Through this voluntary initiative, we
commit to reporting publicly on an annual basis,
payments made to government.
In 2008, we became signatories to the United
Nation’s Global Compact, which is a voluntary
initiative. The United Nation’s Global Compact is a
strategic policy initiative for businesses that are
committed to aligning their operations and
strategies with ten universally accepted principles
in the areas of human rights, labour, environment
and anti-corruption. We will report on our
performance against the principles in 2009.
We are members of and participate in the
International Platinum Group Metals Association,
International Chamber of Commerce, South
African Chamber of Mines, Business Call for
Action and a number of forums in a local context
applicable to our individual operations. In 2008,
we also participated in the Carbon Disclosure
Project.
External organisations and public policy positions
We are recognised for our approach to sustainable
development by being included in the Dow Jones
Sustainability Indexes, FTSE4 Good Index and
Johannesburg Stock Exchange Responsible
Investment Index.
We participate in a number of organisations or
forums which we believe will further our
performance in terms of our values, principles or
commitments or enable us to influence policy and
decision making both nationally and
internationally. On affiliation with an organisation,
we are committed to aligning our business
practices with the principles or requirements of
such an organisation, with the accountability
residing with our CEO. In order to participate and
add value to these organisations, we provide the
necessary training or skills development to our
employees who either participate or who are
responsible for implementation of the criteria or
requirements of these organisations and forums.
We report our progress in terms of these
affiliations on an annual basis.
We have been members of the ICMM since
2005 and continue to value our membership. The
ICMM is a CEO-led organisation representing
leading international mining and metals
companies as well as association members. As a
voluntary member of the ICMM, we support their
vision of a respected mining and metals industry
that is widely recognised as essential for modern
living and a key contributor to sustainable

Management Systems
The purpose of our management system is to
provide tools to support the management of the
business in a systematic and controlled way, with
the aim of delivering consistent performance. We
also use these tools to implement the Safety and
Sustainable Development Management Standards
in order to achieve the commitments of our Safety
and Sustainable Development Policy and so deliver
robust and sustainable business performance.
Among the key constituents of our
management system are our group-wide risk
management (refer to Managing our Risks page 25)
and incident reporting and investigation process. All
operations are responsible for reporting, rating and
investigating incidents. Incidents which are rated as
level three incidents or above are investigated by
applying the Incident Cause Analysis Method, with
the objective that root causes are identified and
appropriate corrective and preventative actions are
taken. The outcomes of all Level four and higher
investigations are presented to the Chief Executive
Committee and the Safety and Sustainability
Committee of the Board. Six Sigma process
improvements constitute an important component
of our management systems, by providing us with
a continuous improvement methodology.
Auditing and assurance
The Audit and Risk Committee of the Board
approves the annual Company-wide internal and
external audit plan. Audit findings are updated
monthly and progress on corrective management
plans is reviewed by the Chief Executive’s
Committee and the Audit and Risk Committee of
the Board on a quarterly basis. External auditing
of ISO 14001, ISO 9001 and OHSAS 18001
management systems, at operational level,
ensures continuous improvement. Environmental
Management Programme Reports form part of
the annual external Environmental Performance
Assessment audits, which is a legal requirement
under the South African Minerals and Petroleum
Resource Development Act 28 of 2002.
As part of the assurance engagement, we
ensure that our assurance providers are
independent from the Company, have the necessary
individual and organisational competencies and that
the engagement process is based on best practice
guidelines. External assurance is provided on
selected data and disclosures in this report, and
reviews alignment of our policies and business
practices with the ICMM principles and our
reporting practices with the GRI reporting
principles. In preparation for this report, we have
conducted an internal audit on our key sustainability
indicators to monitor the effectiveness and
inclusiveness of our systems.
Stakeholder engagement and reporting
Identifying and responding to the expectations of
our stakeholders and incorporating their feedback
into our decision making processes is a strategic
commitment which is an important part of the
way we do business. Our approach to stakeholder
engagement varies with the nature of the
stakeholder and the specific matters at hand,
ranging from formal engagement schedules to ad
hoc informal engagement processes, and range
from site-specific projects to general aspects
affecting the Company at large. The following
section provides more specific information on
engagement undertaken in 2008.
We have a strategic
commitment to
incorporate
feedback from our
stakeholders into
our decision
making process.
20

Stakeholder Engagement
Our stakeholders include:
• Employees;
• Contractors;
• Business partners;
• Organised labour;
• Shareholders;
• Communities;
• Suppliers;
• Tribal structures;
• Local, provincial and national government;
• Non-governmental organisations;
• International and national organisations;
• Industry peers.
Feedback from our stakeholders
General feedback from our stakeholder on our 2007
Sustainable Development Report
The information below provides a summary of
feedback received from our stakeholders on our 2007
report. This feedback has been taken into consideration in
the preparation of this report.
• An honest and transparent report of a good length;
• Reporting should focus on key risks to the company
as well as the business case for sustainable
development;
• All major issues were identified, reported on and
addressed by the Company in the report; however at
times there was insufficient detail;
• Reporting should include more detail in terms of
stakeholder engagement approach, processes, areas
of improvement and which issues are material to each
stakeholder group;
• Reporting of risks and performance should add
context, and benchmarking where possible;
• Timely publishing and adequate distribution of reports
is critical;
• Data published in the report was most useful when
compared with the narrative information, particularly for
benchmarking purposes;
• Report lacks structure and is considered more gloss
than substance;
Feedback from our stakeholders on our engagement
processes
In 2008, satisfaction amongst our respective stakeholder
groups varied; however in general:
• Most feel community engagement has improved over
the past few years;
• A more structured approach to engagement was
recognised;
• Company leadership was considered to be more
visible and engaged.
We are committed to maintaining transparent and ongoing consultative
relationships with all stakeholders and to incorporating this engagement
into the decision-making process.
Martin Khatleli, Shift Supervisor and Johan Raaths, Mine Overseer
of Saffy Shaft accompanying the President of South Africa,
Kgalema Motlanthe on an underground visit.
We appreciate the importance of sound
relationships with our stakeholders in growing our
operations, in delivering consistent operational
performance and in working towards long-term
sustainability. We understand the inherent risk
associated with poor engagement and unstable
relationships with our stakeholders and will
continue to improve our engagement approaches
by evaluating our practices.
Our approach
Our stakeholders are all individuals, communities
or groups that influence our operations or are
affected by our existence. We engage with those
who are directly affected by our operations,
through the nature of our business or through
proximity to our locations, and with those
stakeholders who demonstrate an interest in our
business. We engage with our stakeholders in
order to:
• improve relations;
• understand their perspectives and
expectations; and
• communicate our plans and vision.
We maintain continuity in our relations with
stakeholders using our group-wide Stakeholder
Management Software, and match our projects
with corresponding stakeholder engagements.
We measure our performance on engagement
with the communities where we operate primarily
by undertaking an Annual Community Perception
Survey. Please refer to the section on Uniting with
our Communities for the summary of the results
of the survey.
Additionally In 2008, our internal auditors
assessed the way our key stakeholders see our
engagement processes, as per the box to the
right.

22
Stakeholder Engagement (continued)
Risks or issues that are material to our
stakeholders
In 2008, we have engaged with a diverse range of
stakeholders with varying frequencies and with
different approaches. The table below identifies
the stakeholders with whom we have engaged
with in 2008, how we engage with them, how
often, and some of the more important issues
identified and addressed. The risks or issues
which have been identified below are not
exhaustive and are focused on the more
prominent risk or issue raised within that category
of stakeholders. These risks or issues have been
identified through the direct engagement
processes outlined below and through our
ongoing stakeholder communication channels
inherent to the management of our operations.
We respond to key issues for stakeholders in the
relevant forums, outlined below, and through our
formal reporting channels.
Engagement with our stakeholders in 2008
Stakeholders Methods of engagement Frequency Summary of issues that are material
Employees Lonmin intranet; it contains a library Ongoing • Safety in the workplace;
of information for all employees. • Market-related remuneration;
Platinum Conversation, an employee newsletter Monthly
• Organisational change.
distributed in three languages providing general
information to employees on safety,
performance and other operational aspects.
CEO’s newsletter, translated into four languages: Monthly
provides general information to employees on
safety, performance and strategic matters.
Annual employee climate survey to gauge Annually
employee’s perceptions and experiences whilst
working for the Company.
Sample employee focus groups to determine Annually
issues that are material to them as employees
(specific engagement for the 2008 Sustainable
Development Reports).
Further engagements include shop-floor
briefings, regular internal announcements,
meetings and annual performance reviews. Ongoing
Organised Union engagement forums. Monthly • Employment equity;
labour
Discipline specific meetings covering aspects As required
• Safety in the work place;
of safety, health and remuneration.
• Market related remuneration;
Sample perception survey to obtain feedback Annually
• Availability and affordability of
on perceived Company performance and
housing;
aspects that are material to them as
• Engagement with organised
stakeholders (specific engagement for the
labour.
2008 Sustainable Development Reports).
Shareholders Safety and Sustainable Development roadshow Annually • Safety in the workplace,
to provide shareholders with information particularly in terms of
regarding our performance, and to get their improvement and benchmarking;
feedback on our performance and the • Availability, use and securing of
Company in general. water resources;
Financial and non-financial reporting. Quarterly and
• Availability, use and securing of
annually
energy (especially electricity)
Annual general meeting. Annually
resources;
Performance and strategy meetings. Quarterly on
• Community development in
average
terms of employment, education,
housing and health;
• Attracting and retaining skilled
personnel;
• Engagement with organised
labour;
• Ethics and whistle-blowing.

23
Engagement with our stakeholders in 2008 (continued)
Business Our business partners include Incwala Quarterly • Safety in the workplace;
partners Resources Pty Limited, Anglo Platinum, • Project execution;
Mvelaphanda and the Bapo Ba Mogale, with • Community development.
whom we engage formally at board meetings.
We also engage with the Independent
Development Trust as a business partner.
Traditional We engage with the Traditional Authorities in Quarterly • Equity and shareholding;
Authorities the regions where we operate. The Authorities meetings • Employment equity;
include the Bapo Ba Mogale, Mapela, (monthly in the • Preferential procurement.
Mphahlele, Ledwaba, and Zebediela Ndebele. case of
Zebediela
Ndebele)
Greater Lonmin Lentswe meetings held with the communities Bi-annually • Equity and shareholding;
Communities where we operate as a platform to raise • Employment;
(GLC) concerns and to discuss general matters • Employment; Local procurement
pertaining to the community and the Company. opportunities;
GLC area meetings with area representatives, Quarterly
• Informal settlements and
during which community development and
insufficient housing;
engagement is discussed and project
• HIV/AIDS and pulmonary
performance tracked.
tuberculosis in the community;
GLC development forum: meetings with Quarterly
• Community engagement on
community area representatives during which
community projects.
community development projects are
discussed and performance tracked.
Site-specific projects through social and As required
environmental impact assessments.
GLC Voice, a community newsletter providing Quarterly
general information to communities at large
on aspects relating to the Company and
to the GLC.
Perception survey within the GLC to obtain Annually
insight into the communities’ perception and
experience of Lonmin as a Company and our
performance in terms of engagement and
development initiatives.
Local, regional Direct ongoing engagement on environmental Ranges from • Safety in the workplace;
and national and social issues with amongst others the monthly,
Government local municipalities, the Department of quarterly, • Community development;
Minerals and Energy, the Department of Water annually to • Availability, use and securing
Affairs and Forestry, the Department of Health, ongoing of water resources;
the Department of Education and the • Employment equity;
Department of Agriculture, Conservation, • Affordability and availability of
Environment and Tourism. housing for employees.
Legislative activities, including social and As required

24
Engagement with our stakeholders in 2008 (continued)
Contractors We continuously engage with our contractors Ongoing • Optimising use of non-renewable
and suppliers and suppliers on safety, aspects associated dependent resources;
with sustainability requirements and on type of • Land and biodiversity
preferential procurement. contractor management.
or supplier
Non- Sample perception survey to obtain feedback Annually • Community development,
governmental on perceived Company performance and particularly through education;
organisations aspects that are material to them as • Availability of housing for
stakeholders (specific engagement for the employees and increase in
2008 Sustainable Development Reports). informal settlements;
Legislative activities, including social and As required
• HIV/AIDS and pulmonary
tuberculosis in the workplace
and community.
Industry We actively engage in various industry Dependent on • Availability and affordability of
associations associations such as the South African the association, housing for employees
Chamber of Mines, Producers Forum, the ranges from • Safety in the workplace;
ICMM, the International Platinum Association monthly to • Availability, use and securing of
and the International Platinum Guild. twice per annum water resources;
• Availability, use and securing of
energy resources;
• Community development –
alleviation of poverty;
• Environmental legal compliance
of our operations.
Industry peers We engage with our industry peers on an Dependent on • HIV/AIDS and pulmonary
ad hoc basis, primarily at industry related forum or tuberculosis in the workplace
forums or industry associations. engagement and community;
platform • Availability and affordability of
housing for employees;
on perceived Company Performance and
• Safety in the workplace;
• Local enterprise development;
• Community infrastructure
development;

Risk Management
The timely identification, assessment and
management of risks is critical to the success
of our business. The Lonmin Risk Management
Policy and Risk Management Standard provide
the framework for integrated and dynamic risk
management in the Company, our subsidiaries
and partnerships.
Our approach
Risk management encompasses both a bottom-
up and top-down approach with the objective to
have employees actively involved in the
management of risks to the business and in the
work place.
The top-down approach involves senior
executives of the business reviewing strategic
risks facing the business and our ability to meet
our strategic objectives. The bottom-up approach
involves management within each business unit
reviewing risks that may prevent achievement of
the business specific objectives. These reviews
are conducted annually and on an ad hoc basis
as business changes or the risks change so as
to support business decisions. Progress on
management plans is tracked on a monthly basis
and internal audits undertaken on a frequent
basis. The Chief Executive Committee receives
a quarterly report on the business risks and
progress in mitigating or reducing these risks.
In addition, a six-monthly report to the Audit and
Risk Committee of the Board highlights the
progress made on risk management and the
status of all high priority actions.
The precautionary approach is inherent in the
risk management framework. It identifies all risks
that could affect the Company and its
partnerships, using a standard framework to
assess risks and prioritise actions. It embeds risk
management as a line responsibility, while
monitoring progress on actions to mitigate the
risks on a monthly basis; and implementing a
structure that facilitates continuous improvement
and shares best practice. Each risk is identified,
assessed in terms of pure risk or the gross
We are committed to providing adequate and appropriate resources to
implement effective risk management during all phases of our operations.
Roof bolting at K3 Shaft to minimise fatalities and serious
injuries resulting from fall of ground occurrences.
financial exposure of the risk, the overall
effectiveness of the control environment, the
shortcomings with the controls in place, the
severity and likelihood of the risk occurring, the
residual risk or risk score, the priority of each of
the risks and action plans to mitigate the risk.
Factors taken into consideration in the
identification of risks include our values and
commitments, critical business success factors
and legislation.
Our risks
Whilst the Summary Sustainable Development
Report provides details around our more
significant risks, this report provides further
information on risks and issues facing the
Company that we believe are material. They
are not presented in any order of significance
in the report. The table on the next page outlines
these issues/risks, why the management of these
risks is important to us, and how we are
minimising their impact on the Company.
25

26
Risk Management (continued)
Company risks in 2008
Issue/risk Why the management of this risk is important to us How we are managing this risk
Creating wealth Our Company’s vision is to create value • Associated risks are identified, managed and
by the discovery, acquisition, development monitored through our Company risk
and marketing of minerals and metals for management framework;
communities, shareholders, business • We have produced 726,918 oz of platinum
partners, employees and suppliers. Creating and 1,401,371 oz of total PGMs for final
wealth both directly and indirectly is metal sales for financial year 2008;
fundamental to the success and • Net cash flow for financial year 2008 was
sustainability of the Company. Creating US$ 1,815 million;
wealth is the basis of our existence. Our • Creating wealth for the communities where
mission is to grow and build our portfolio we operate. In 2008, US$3.26 million was
of high quality assets and to enable our spent on local infrastructure development
shareholders to realise a superior total and US$596.19 million was the total
return on their investments and to improve discretionary spend with HDSA suppliers;
the quality of life of current and future • Additionally, through the success of our local
generations through the integration of supplier development programme, one
economic prosperity, social development hundred and nine contracts and orders to
and environmental protection. date, worth US$29.13 million, have been
awarded to twenty seven local suppliers.
Upholding ethical Our Company’s values encompass integrity, • Our business and operating values are
business practices honesty and trust and our business clearly outlined in the Lonmin Charter;
practices are founded on these values. • Group management is underpinned by our
Poor performance has direct implications Safety and Sustainable Development Policy
for Company reputation, on shareholder and supported by targets, standards and
value and reduced profitability. guidelines;
• Associated risks are identified, managed and
monitored through our Company risk
management framework;
• The Code of Business Ethics provides the
framework within which all Company
business practices must be conducted,
managed and regulated. Training on the core
principles of this code is provided to all
employees;
• In support of the Code of Ethics, we have
instituted an Ethics Hotline, with is available
for the use of any employees, contractors,
customers or suppliers who wishes to report
activities that they feel are not consistent with
the spirit of this Code;
• Systems of control have been introduced to
ensure that in attaining our objectives, we
behave legally, ethically and appropriately;
• We are a founding member of the Institute of
Business Ethics as well as a member of the
Ethics Institute of South Africa.

27
Company risks in 2008 (continued)
Respecting and The principles of human rights are • We do not tolerate any behaviour that may
valuing fundamental fundamental to the success of the compromise the principles of human rights
human rights Company and integral to our Company and we endeavour to promote these
values. Poor performance has direct principles within our sphere of influence;
implications Company reputation, on • Our human capital and sustainability policies
shareholder value and reduced profitability. are aligned with human rights principles,
particularly in terms of employment, working
conditions and grievance procedures;
• Human rights are integral to our Company
risk management framework;
• We have targets and management plans in
place to reduce risks associated with human
rights;
• In 2008, we became a signatory to the
United Nations Global Compact to enhance
our knowledge in the sphere of human rights;
• We are committed to upholding the freedom
of association and the effective recognition of
the right to collective bargaining.
Eliminating fatalities Zero harm to our employees and • Group management is underpinned by our
and serious injuries contractors is the core value of our Safety and Sustainable Development Policy
business. Our employees and contractors’ and supported by group targets, standards
wellbeing is the foundation to the success and guidelines;
of our business. Poor safety performance • Associated risks are identified, managed and
has direct cost implications, reputational monitored through our Company risk
impacts and may affect our license management framework;
to operate. • We have a zero tolerance approach to any
risky behaviour;
• We are improving our safety management
systems;
• All injuries and near-miss incidents are
thoroughly investigated;
• We have effective and highly trained
emergency and response teams;
• We have innovative training and awareness
initiatives.
Empowering HDSA Poor regulatory compliance may • Group management is underpinned by our
compromise our license to operate and human capital policies and supported by
stakeholder relations; and could be group targets, standards and guidelines;
expensive. But besides meeting legislative • Associated risks are identified, managed and
requirements, the strength of the Company monitored through our Company risk
is enhanced by a diverse and skilled management framework;
workforce. • In terms of HDSA ownership, Incwala
Resources Proprietary Limited has an 18%
holding in the share capital of our Marikana
and Limpopo operations and a 26% stake in
our Akanani project. Our other business
partners include Mvelaphanda Resources
and the Bapo Ba Mogale Mining Company;
• In terms of expanding and developing skills
of HDSA employees, we have numerous
employee training and development
programmes in place, including Adult-basic
education and training (ABET), skills
development and leadership programmes;

28
Empowering HDSA • We promote the employment of HDSAs
(continued) within the Company at professional and
management level and to date, 42.3% of our
management employees comprise HDSA
employees, 6.1% of our total workforce and
0.6% are female and disabled employees
respectively;
• We have increased the participation of
HDSAs in our procurement supply chain and
in 2008, we have exceeded our target by
spending 56.5% on HDSA procurement.
Additionally we have an intensive programme
in place to support, train, and develop local
HDSA companies;
• We are improving socio-economic
development in our host communities and
major labour-sending areas. In 2008 we
spent US$6.5 million on community
development projects.
Attracting and As a result of the ever-increasing demand • Group management is underpinned by our
retaining a skilled and competing interests for skilled recruits Safety and Sustainable Development Policy
workforce nationally and within the international and supported by group targets, standards
mining industry, our success is dependent and guidelines;
on our ability to attract talented employees • Associated risks are identified, managed and
to our operations, while retaining and monitored through our Company risk
developing our existing employees. management framework;
Management of the risk has the potential • We have recruitment programmes
to increase productivity, decrease customised for local and national level
operational costs and further attract and recruitment. Market-related remuneration,
retain talent. We are successful when our as well as employee benefits is key
employees live and work safely and elements of our recruitment success;
experience the personal satisfaction that • We have extensive employee development
comes with high performance programmes in place, encompassing
and recognition. both personal and professional development
requirements, including talent management,
performance assessment, career
development plans and numerous training
programmes;
• We have partnered with academic institutions
to attract young professionals to the mining
industry and to the Company through our
bursary and intern programmes. In 2008 142
and 94 persons participated in our bursary
and intern programmes respectively.

29
Availability and The regions in which we operate are • Associated risks are identified, managed and
affordability of housing characterised by an estimated 50% of the monitored through our Company risk
for our employees population living in informal dwellings. management framework;
The shortage of housing is a critical issue • Our approach to housing is centred around
on both a national and regional scale and the delivery of affordable houses which
a concern that needs to be addressed. The impact positively on our employees’ quality
magnitude of this challenge for the of lives in terms of reuniting employees with
Company is underlined by statistics their families, enhanced security and
indicating that more than two thousand of experiencing sustainable community living;
our own employees reside in these informal • We are committed to the construction of
settlements. The well-being of our 5,500 houses within the GLC by 2011 and
employees is fundamental to our success. the conversion of all our 114 hostels into
To this end, we are committed to establishing family and bachelor accommodation by
sustainable houses that provide shelter, 2011. Phase one, the conversion of 29
security, services and a sense of place for hostel complexes, was completed in 2008;
all our employees and their families. • We realise that it is in the best interest of our
employees to own their own homes and it is
our intention to promote the ownership of
these houses by the occupants. We have
been successful in 2008 in addressing
concerns around affordability of housing;
• The nature and design of the proposed
houses are informed by a housing needs
assessment that was undertaken in 2008;
• In 2008, progress on the construction of
5,500 houses predominantly entailed aligning
delivery with customer expectations; urban
design plans for Marikana in terms of the
housing programme were completed, land
has been secured for 2,500 houses in
Marikana and we have earmarked further
available land for housing purposes;
Eliminating NIHL NIHL is the most significant occupational • Group management is underpinned by our
disability faced by our employees and our Safety and Sustainable Development Policy
contractors. It compromises their quality and supported by group targets, standards
of life, compromises our Zero Harm and guidelines;
philosophy and incurs costs. • Associated risks are identified, managed and
• We reduce the exposure of our employees
and contractors to noise levels that exceed
the noise exposure limits through engineering
interventions to reduce noise levels in the
work place and by utilising personal
protective equipment;
• We have a comprehensive hearing
conservation programme in place supported
by a group risk management framework and
the guidelines of the South African
mandatory code of practice for noise;
• All employees and contractors undergo
annual medical surveillance in order to detect
any NIHL that demands further preventive
measures.

30
Managing HIV/AIDS HIV/AIDS is a serious and debilitating • We respond to the epidemic in a responsible,
disease which has the potential to have non-discriminatory and supportive manner
widespread social and economic within our framework for the management
consequences for the Company and the of the disease;
communities where we operate. The health • Group management is underpinned by
and wellbeing of both our employees and HIV/AIDS Policy and supported by group
the communities is essential to our success targets, standards and guidelines;
as a Company. • Associated risks are identified, managed and
• Our response to the disease moves beyond
the boundary of our operations into the GLC,
as we value the wellbeing of the communities
and acknowledge that they are the
foundations of our workforce;
• We continue to participate in the
development of leading practices and
industry benchmarking in health care in a
drive to improve our health systems;
• We have extensive education and awareness
programmes, including our VCT programme,
in an effort to prevent the spread of the
disease, to eliminate the associated social
stigma and to provide employees with
sensitive, accurate and up to date information
about risk reduction in their personal lives;
• We have a wellness programme, including
the provision of ART, designed to cater for
the physical and emotional needs of HIV
positive employees;
• Free ART is offered to an employee for life,
regardless of whether or not they remain
employed by the Company.
Accessing and As a result of the growing demand and • Group management is underpinned by our
managing our energy competing interests for energy both Safety and Sustainable Development Policy
resources internationally and within South Africa, the and supported by group targets, standards
success of our Company is dependent on and guidelines;
our ability to secure access to sufficient • Associated risks are identified, managed and
energy resource and to manage these monitored through our Company risk
resources effectively and in a responsible management framework;
manner for our current operations and • We have identified and are implementing
growth opportunities. The efficient utilisation various short, medium and long-term
of energy and subsequent reduction in management plans to reduce our energy
greenhouse gas emissions will reduce consumption and secure necessary electricity
operational costs and enhanced reputation for future growth opportunities in light of the
with our stakeholders. South African electricity supply shortage;
• We are designing all future projects for
maximum energy efficiency;
• We are fast-tracking existing efficiency
programmes and initiating additional
innovative planning and implementation of
energy efficiency improvements;
• We have efficient, real time electrical energy
and demand management monitoring and
control systems in place to effectively monitor
our maximum demand and consumption
Company;

31
Accessing and • We continue to participate in international,
managing our energy national and local task teams to enhance
resources (continued) our performance on energy management
and reduce our impact on climate change;
• Quantification of our operation’s carbon
footprint as well as seeking partnerships with
the IFC on energy audits of our operations
and assist us with further initiatives to reduce
our energy footprints.
Reducing our impacts The management of our impacts on climate • Group management is underpinned by our
on climate change change are imperative. Poor performance Safety and Sustainable Development Policy
in this regard will compromise our value of and supported by group targets, standards
Zero Harm and our commitments, and guidelines;
potentially resulting in impacts on resource • Associated risks are identified, managed and
availability, reputational impacts and monitored through our Company risk
ultimately shareholder value. management framework;
• We have identified and are implementing
various short-, medium- and long-term
management plans to reduce our greenhouse
gases by focusing on efficient process
technologies and improved control systems;
• We continuously measure our performance
around energy efficiency and greenhouse gas
emissions targets to assess the effectiveness
of these programmes;
• Contributing to research on atmospheric
aerosols in partnership with the Climatology
Research Group at the University of the
Witwatersrand;
• Quantification of our operation’s carbon
footprint as well as seeking partnerships with
the IFC to undertake energy audits of our
operations and assist us with further
initiatives to reduce our energy footprints;
• Incorporating environmentally sound design
into our housing programmes, with solar
energy options;
Accessing and Without access to adequate water • Group management is underpinned by our
managing our resources, our mining operations cannot Safety and Sustainable Development Policy
water resources be sustained. All three pillars of our business and supported by group targets, standards
strategy are dependent on water resources. and guidelines;
As a result of the growing demand and • Associated risks are identified, managed
competing interests for water both and monitored through our Company risk
internationally and within South Africa, we management framework;
need to have the ability to secure the • We have secured the availability of sufficient
availability of sufficient water for our water for the future of our current mining
operations without adversely affecting operations;
access to safe drinking water by the • We are in the process of securing further
communities where we operate. Additionally water resources for our Akanani operations
the efficient utilisation of fresh water and the in the Limpopo Province and are
reduction of pollution to the water resources confident that sufficient supply will be
will reduce closure cost liabilities, reduce available for maximum demand during
costs associated with purchasing of fresh the operational phase;
water and decreased potential for litigation • We have reduced our freshwater
or fines against the Company. consumption and increased water recycling;
• We have a zero discharge policy at all
operations;

Lonmin 2008 Web-based Sustainable Development Report

Lonmin 2008 Web-based Sustainable Development Report

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