The third-largest platinum producer in the world, Lonmin, announced on Friday that it begun a process of retrenching 4000 of its employees.

Spokesman Dani Cohen said the company had advised its employees and unions that in response to the economic crisis, it had begun cutting jobs at its Marikana operation in Rustenburg.

"Lonmin is committed to constructively engaging with unions in the process to try to minimise the job losses," said Cohen.

Earlier trade union Solidarity spokesman Jaco Kleynhans said about 15 percent of employees in all job categories at Lonmin would be affected by the planned retrenchments.

"The retrenchments are a result of a decrease in demand for platinum caused by the economic crisis," said Kleynhans.

The consumption of platinum largely depended on the manufacturing and sale of new vehicles, since about 54 percent of all platinum produced was used for car exhausts.

"The drop in the platinum price has placed pressure on the industry. A larger solution is urgently needed to counter further ripples of the economic crisis in the industry," he said.

The Commission for Conciliation, Mediation and Arbitration is expected to act as mediator between Lonmin and the trade unions.

Sapa