Lonmin PLC Lonmin Secures $50m Funding for Tailings Project (4817H)

TIDMLMI

RNS Number : 4817H

Lonmin PLC

18 August 2016

Lonmin Secures $50 million Funding For Tailings Project

Lonmin Plc ("Lonmin" or "the Company"), is pleased to announce that it has secured competitive funding of $50 million for the Bulk Tailings Treatment project ("the BTT project" or "the project") through a specific project finance metal streaming arrangement. The first tranche of project funding of $9 million has now been received and work has already started on the project.

The BTT project involves the re-mining of Lonmin's Easterns Tailings Dam. The project entails the reprocessing of 26 million tonnes of Tailings material at a rate of 300,000 tonnes per month. Commissioning and ramp up to full production is expected during the 2018 Financial Year.

Once at steady-state, the project is expected to produce about 29,000 ounces of Platinum per year or some 55,000 ounces of PGM, at a yield of 0.5 grammes per tonne (5PGE+Au) (grade of 1.42 grammes per tonne at a recovery of 35%). The project is part of Lonmin's business plan and is expected to produce the lowest cost ounces in the Lonmin portfolio.

"The BTT project is part of our strategy to focus on low cost ounces to maximise our cash position and create value for all our stakeholders," said Lonmin's Chief Executive Ben Magara.

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ENQUIRIES

Investors / Analysts:

Lonmin

   Tanya Chikanza (Head of Investor Relations)         [phone] /[phone] 
   Andrew Mari (Investor Relations Manager)            [phone] 

Media:

 
       Cardew Group 
        Anthony Cardew / Emma 
        Crawshaw                    [phone] 
       Sue Vey                    [phone] 
 

Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin's operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70% of known global PGM resources are located.

The Company creates value through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 18, 2016 03:00 ET (07:00 GMT)