UPDATE:Lonmin Completes BEE Deal; Appoints Ramaphosa To Board

13th Jul 2010 12:26

(Adds details and updated share price.) By Alex MacDonald Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Platinum producer Lonmin PLC (LMI.LN) has completed a deal to ensure the financial viability of its troubled Black Economic Empowerment partner, Incwala Resources, the company confirmed Tuesday. According to Lonmin, the world's third largest platinum producer, Black-owned Shanduka Resources Ltd now owns 50.03% of Incwala Resources after all conditions of the deal were satisfied. The deal safeguards the financial viability of Incwala while ensuring that Lonmin remains compliant with South Africa's BEE legislation. South Africa introduced black empowerment legislation after apartheid ended as a way to redistribute assets and wealth among the country's majority black population. Mining companies are required to sell a 26% equity stake in their assets to a partner with black empowerment credentials by 2014 in order to satisfy part of the government's BEE legislation. Following the completion of the deal, Lonmin has appointed Cyril Ramaphosa, executive chairman of Shanduka Group, to Lonmin's board of directors as a non-executive director. Ramaphosa, 57, has wealth of experience in both politics and business. As chairman of the Constitutional Assembly from 1994 to 1996, he successfully helped deliver South Africa's constitution. He also served as chairman of the Black Economic Empowerment Commission in South Africa and was recently appointed as a member of the National Planning Commission, a body created by the President of South Africa with responsibility for drafting a long-term national development plan for the country. In the business world, Ramaphosa holds several board positions including non-executive chairman of telecommunications group MTN Group Ltd (MTN.JO) and joint chairman of pulp and paper producer Mondi Ltd (MND.JO). Ramaphosa was also previously a director of food and service group firm Molope Group Ltd, which went into voluntary liquidation in July 2000. Molope was involved in non-core mining services. "Our partnership with Shanduka in Incwala, and Cyril's wise counsel will be invaluable in helping Lonmin build on its operational capacity in South Africa and to fulfill its strategic transformational objectives," Lonmin Chairman Roger Phillimore said in a statement. Ramaphosa is also a non-executive director of insurance group SASRIA, brewing group SABMiller (SAB.JO), steelmaker MacSteel Global and financial services groups Alexander Forbes (AFB.JO) and Standard Bank Group (SBK.JO). At 1125 GMT, Lonmin's shares were up 12 pence or 0.8% at 1,469p a share. Company Website: http://www.lonmin.com -By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; [email protected] (END) Dow Jones Newswires July 13, 2010 07:26 ET (11:26 GMT)