Lonmin aims for $400m rights issue

Platinum producer also proceeds with job cuts plan.

JOHANNESBURG – Platinum producer Lonmin plans a $400 million rights issue and will proceed with a planned restructuring to cut 6 000 jobs in the face of depressed prices, it said on Wednesday.

Lonmin also said in a statement that it had slashed its capital expenditure for the year to the end of September 30 to $136 million from an original target of $250 million.

The company had already said it might trim its workforce by up to 6 000, which will include voluntary severances and early retirements. It said the restructuring programme is now expected to be completed by the end of September 2016.

The embattled platinum producer, whose Marikana mine was the scene of the police slaying of 34 wildcat strikers three years ago, also said it planned to amend its debt facilities “for a total of $370 million, maturing in May 2020.” 

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