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LON - Lonmin Plc - UG2 tailings re-treatment contracts for chrome removal Lonmin Plc (Incorporated in England and Wales) (Registered in the Republic of South Africa under registration number 1969/000015/10) JSE code: LON Issuer Code: LOLMI & ISIN: GB0031192486 ("Lonmin") 2 March 2010 Lonmin Plc UG2 TAILINGS RE-TREATMENT CONTRACTS FOR CHROME REMOVAL Lonmin Plc ("Lonmin" or "the Company") today announces that it has signed two separate contracts with the Xstrata-Merafe Chrome Venture and ChromTech for the construction of Chrome recovery plants ("CRP`s") to treat the current tailings from UG2 concentrators at Lonmin`s Marikana operations. The contracts involve the construction of two CRP`s, each of which will be built and operated by the Xstrata-Merafe Chrome Venture and ChromTech. Under the terms of the contracts, the Xstrata-Merafe Chrome Venture and ChromTech will purchase the Chromite concentrate produced from the CRP`s, which are expected to be in full production by the second half of Lonmin`s 2011 financial year. The duration of the contract with ChromTech is approximately five years and they are expected to treat approximately 0.3 million tonnes of Chromite concentrate contained in the tailings feed per annum. The duration of the contract with the Xstrata-Merafe Chrome Venture is based on total volume treated, rather than a fixed time period, and is expected to treat approximately 1.5 million tonnes of Chromite concentrate contained in the tailings feed per annum. In addition, Lonmin has commenced an initial design study relating to the construction of PGM recovery plants to recover PGM`s from the UG2 tailings, following the removal of the Chrome. This process is expected to improve overall concentrator recoveries. Ian Farmer, Lonmin`s Chief Executive Officer, commented: "These agreements mark the continuation of a trend across the industry as PGM producers look to realise value through Chrome by-product revenues and improved PGM recoveries". - Ends - ENQUIRIES: Investors / Analysts: Rob Gurner + 44 (0) 207 201 6050 Head of Investor Relations Media: Cardew Group + 44 (0) 207 930 0777 Anthony Cardew / Rupert Pittman Financial Dynamics + 27 (0) 21 487 9000 Dani Cohen / Ravin Maharaj Date: 02/03/2010 09:00:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
