Lonmin agrees to buy Amplats stake in Pandora

Lonmin has agreed to buy Anglo American Platinum’s 42.5% stake in the Pandora joint venture mine for 400m rand.

The deal will up Lonmin’s stake in the JV to 92.5%. As it stands, the Pandora JV is held 50% by Lonmin’s subsidiary, Eastern Patinum, 42.5% by AAP through Rustenburg Platinum and 7.5% by Northam Limited through Mvelaphanda Resources.

Lonmin said the acquisition allows it to consolidate its position “in this relatively shallow and high-grade mineral resource providing an attractive option for development by Eastern Platinum in both the short and longer term”.

The Pandora JV contributed 37,553 platinum ounces to Lonmin in the 2015 financial year.

Ben Magara, Lonmin’s chief executive officer, said: “This is an excellent strategic fit for Lonmin, which increases our exposure to a valuable asset with long-term development potential."

At 1110 GMT, Lonmin shares were down 2.1% to 214.25p.