[miningmx.com] – EMPOWERMENT group Shanduka said it remained committed to Incwala Resources, a black economic empowerment partner of debt-laden platinum miner Lonmin.
Finweek reported this week that Shanduka has opted not to repay the £200m loan (just over $300m at the time) which was used to buy its effective 9% stake in Lonmin, which is held through Incwala.
Shanduka’s 50.03% investment in Incwala was facilitated by the £200m loan raised by Lonmin, and a R300m equity injection by Shanduka. It was followed by a further R175m loan from Lonmin.
The loan conditions state that “Lonmin has the right to take over the investment if the loan is breached, and Shanduka Group will forfeit both the investment stake and its initial R300m investment into Incwala Resources,” Mmabatho Maboya, Shanduka’s stakeholder relations manager, told Finweek.
In a statement released late on Friday, Shanduka CEO Phuti Mahanyele said “we remain committed to our investment in Incwala Resources”.
Lonmin declined to comment on the matter as it is in a closed period ahead of its annual results announcement on 9 November.
The platinum miner, which aims to raise $400m in capital from shareholders to shore up its balance sheet, warned that it will impair $1.85bn to $2bn of assets for the year to December, but made no mention of the Shanduka/Incwala issue. It has only recorded an $80m impairment on the loan so far.
