Business

Search for new Lonmin CEO begins

Reuters

Mining company Lonmin has opened the search for a new chief executive to revive its fortunes as Ian Farmer officially stepped aside.

Mining company Lonmin has opened the search for a new chief executive. (Madelene Cronje, M&G)

The absence of a permanent CEO has been a major concern cited by investors seeking a clear strategy from the company after months of financial pressure, weak platinum prices and a wave of deadly strikes at South African mines.

Chief financial officer Simon Scott had ruled himself out of the job on a permanent basis, Lonmin said, but he would continue to fill the role until a replacement was found.

Farmer, who is being treated for a serious illness, was admitted to hospital in August, coinciding with a wave of unrest at the group's Marikana mine that left 46 people dead and paralysed operations.

The strikes increased pressure on a company that was already being squeezed by high costs and weak platinum prices.

It was forced to turn to investors last month to raise $817-million to avoid breaching lending terms.

Its biggest shareholder, miner Xstrata, which holds a 25% stake, supported the rights issue but it said it wanted management changes.

Lonmin chairman Roger Phillimore said the group would miss Farmer's ability, commitment and drive at the company, where he worked for more than 26 years, including four as chief executive.

Shares in Lonmin were trading down 1.79% at 280.4 pence by 1044 GMT, underperforming a flat mid cap index in London.

The stock has gained some ground since November 9, when it touched a 13-year low of 227 pence, but it remains 45% down on its level 12 months ago. – Reuters

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