It is reported that as many as 21,000 people employed by or dependent on income from the platinum mining and supplier industries could experience a body blow in the month ahead as Lonmin is closing some of its local platinum mines and will halt two key projects because of a 64%fall in the platinum price since March 2008.

One thousand jobs will be lost at its Marikana open pit mine in North West and 13 at the group's London office.

Mr Ian Farmer CEO of Lonmin said that a further 1,600 jobs were at risk at the group's Limpopo operation. Lonmin employs about 25,000 people at its local mines.

Mr Farmer said that the cuts would not affect Lonmin's overall output. It planned to keep its platinum production unchanged at 725,000 ounces in the year to September 2008. He added that the Marikana open pit mine in Limpopo would be closed but underground production at Marikana would be increased. The open pit operations were not profitable at prevailing platinum prices.

Lonmin will suspend open pit mining at Marikana by the end of next month. It might close the Limpopo mine shaft and put on hold growth projects such as Akanani in Limpopo and the expansion of the Limpopo mine.