GOLD 1223.24 $/ozChange: -12.88
PLATINUM 1349.00 $/ozChange: -13.00
R/$ exchange 11.01Change: -0.10
R/€ exchange 14.17Change: -0.03
We have detected that the browser you are using is no longer supported. As a result, some content may not display correctly.
We suggest that you upgrade to the latest version of any of the following browsers:
close notification
powered by
Advanced Search
Breaking News
Xstrata backs Lonmin rights issue but seeks new management
Embed Code Close
16th November 2012
Text Smaller Disabled Text Bigger

JOHANNESBURG ( – Diversified miner and 25% Lonmin shareholder Xstrata said it would back the troubled platinum producer’s proposed $817-million rights issue, but reaffirmed its demand for management changes.

While Xstrata would support the rights issue, which would allow Lonmin to start its recovery, the firm believed that an overhaul of the board, management team and business plan was required so that a “realistic strategy to restore shareholder value can be developed”, said Xstrata CEO Mick Davis.

“For two years we have sought to address the strategic and operational challenges that Lonmin faces. Given the dire financial position of Lonmin, we concur that a substantial recapitalisation of the business is required. However that recapitalisation must be backed by a suitable management team and business plan,” he commented in a statement.

Lonmin welcomed Xstrata’s support but earlier this week rejected its largest shareholder’s first suggestion of ceding management control.

The LSE- and JSE-listed group said in a statement to shareholders on Friday said that 86% proxy voting instructions, from other shareholders, for Monday’s general meeting indicated an approval of the rights issue.

“The board firmly believes that if the rights issue is not approved, it will jeopardise the substantial inherent value in Lonmin’s well-vested assets to the detriment of all stakeholders,” it said earlier this week.

Edited by: Mariaan Webb


To subscribe to Mining Weekly's print magazine email or buy now.

FULL Access to Mining Weekly and Engineering News - Subscribe Now!
Subscribe Now Login
Topics in this article
Mick Davis
Picture by: Duane Daws
Mick Davis