LONDON Aug 18 (Reuters) – Platinum miner Lonmin is
considering a $1 billion rights issue starting as early as next
month to recoup losses following the closure of its Marikana
mine in South Africa where 34 workers were killed, the Sunday
Times reported.
Lonmin shareholder Xstrata had signalled it was
willing to cover its part of the fundraising, the newspaper
said, citing sources close to the situation.
Lonmin was likely to ask for leniency in loan repayments
from its bank and reduce its spending to deal with spiralling
debt before the end of its financial year next month, the paper
added.
The London-listed company was forced to stop operations at
its biggest mine this week after South African police opened
fire on striking miners armed with machetes and sticks on
Friday.
It was Africa’s bloodiest security operation since the end
of apartheid.
The company is also under pressure from falling platinum
prices due to a collapse in demand from European carmakers.
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