Lonmin plc - PRESS RELEASE

Lonmin plc - PRESS RELEASE                                                      
Lonmin plc                                                                      
JSE code:LON                                                                    
ISIN code: GB0031192486                                                         
PRESS RELEASE                                                                   
LONMIN AND IMPLATS AGREE TO END JOINT CONTROL OF LONPLATS                       
AND ON GROUND BREAKING EMPOWERMENT PROCESS                                      
Introduction                                                                    
Lonmin Plc ("Lonmin") announced today that it has signed a non binding          
Memorandum of Understanding ("MoU") with Impala Platinum Holdings Ltd           
("Implats") for the sale by Implats of its entire 27.1% holdings in Western     
Platinum Ltd. and Eastern Platinum Ltd. (together referred to as "Lonplats").   
Lonmin currently holds the balance of 72.9% of Lonplats, which is Lonmin"s      
principal operating subsidiary. This sale will simplify the holding structure of
both Implats and Lonmin and lays the foundation for a significant Black Economic
Empowerment (BEE) transaction in due course.  The sale will also generate       
substantial additional foreign direct investment by Lonmin in South Africa.     
The key terms of the MoU are as follows:-                                       
Implats will dispose of its entire 27.1% holding in Lonplats for $800 million.  
The Principals" Agreement between Lonmin and Implats will terminate by mutual   
agreement on completion of the transaction, thus ending joint control of        
Lonplats, the restrictions relating to the introduction of new shareholders and 
the change of control clause relating to Lonmin.                                
Lonmin will acquire from Implats an interest of 9.1% of the issued share capital
of Lonplats, increasing its direct holding to 82%. The net cash consideration   
will be approximately $242 million, calculated as $269 million less the amount  
of Implats" right to a final Lonplats dividend for 2003, estimated at $27       
million.                                                                        
Lonmin and Implats will form a new jointly owned (50:50) company ("Newco") which
will acquire from Implats 18% of the issued share capital of Lonplats for a     
consideration of $531 million.  Historically Disadvantaged South Africans       
("HDSA"s") will be invited to acquire a controlling stake in Newco in a process 
that will be facilitated by Lonmin and Implats and overseen by Lonmin.          
Newco will be funded through an initial equity capital contribution by Lonmin   
and Implats of $115.5 million each. The balance of Newco"s capital is expected  
to comprise senior debt facilities, mezzanine finance and HDSA equity.  This is 
expected to be arranged by JP Morgan and Standard Bank of South Africa Limited. 
The Minister of the Department of Minerals and Energy, has been consulted and   
welcomes the developments.                                                      
Black Economic Empowerment                                                      
It is intended that this transaction will pave the way for a very significant   
BEE transaction in the platinum group metals ("PGM") sector that will enable    
HDSA shareholders to acquire a direct, influential equity interest in a PGM     
major.  Lonplats is a world-class asset, with mine to market control of its     
products and a low risk growth profile.  It is cash generative and fully capable
of funding its growth programme, which is aimed at increasing production to one 
million platinum ounces by 2008.                                                
Lonmin and Implats intend initiating the empowerment process promptly.  HDSA"s  
will be invited to subscribe for shares in the equity of Newco with a view to it
becoming controlled by HDSA"s.  Lonmin will oversee the formation of the Newco  
board and the initial introduction of anchor HDSA shareholders and management.  
Newco will have representation on the board of Lonplats.  Lonmin expects that,  
once Newco is controlled by HDSA"s, Lonplats will have exceeded the phase one   
scorecard requirements of the South African Mining Charter for HDSA ownership.  
Real progress continues to be made in the other scorecard categories.           
Lonmin"s vision for Newco is that it will develop into a sustainable flagship   
for BEE ambitions in the South African mining industry with robust assets and   
sound growth prospects. In due course, Newco is expected to acquire other mining
assets and seek to qualify for a listing on the JSE Securities Exchange, further
expanding its broad base of HDSA shareholders who will benefit from the mineral 
wealth of South Africa.                                                         
During the course of introducing HDSA"s into Newco, the holdings of Lonmin and  
Implats will be diluted.  However, Lonmin expects to maintain an involvement in 
Newco, possibly as a shareholder, as it develops into a mature and robust BEE   
entity.                                                                         
Financial Information                                                           
The pre-tax profits of Lonplats for the year ended 30 September 2002 amounted to
$327 million and the net assets of Lonplats at that date amounted to $638       
million.  The dividends declared by Lonplats in respect of that year, which were
attributable to Implat"s 27.1% interest in Lonplats and were received by        
Implats, amounted to $33 million.                                               
Lonmin will acquire the 9.1% interest in Lonplats and will fund its equity      
interest in Newco utilising existing senior debt facilities underwritten by     
Lloyds TSB. Lonmin will initially account for its investment in Newco as a joint
venture.                                                                        
The transaction is expected to be broadly neutral in terms of earnings in 2004  
before the amortisation of goodwill.  The gearing on the balance sheet will rise
significantly in the short term but it is anticipated that this will not affect 
Lonmin"s stated dividend policy.                                                
Strategic Benefits                                                              
The strategic benefits to Lonmin are significant and include:-                  
The removal of joint control of Lonplats and the change of control provision in 
respect of Lonmin along with other restrictive elements of the Principals"      
Agreement                                                                       
Consolidation of Lonmin"s direct ownership of Lonplats at 82%                   
The creation of an attractive platform for the future introduction of broad     
based HDSA shareholders into Lonplats                                           
Participation as a shareholder in the anticipated prosperity of Newco           
Conditions and Timetable                                                        
The parties will enter into the sale and purchase agreement when satisfactory   
debt financing for Newco has been secured and once the parties have received    
reasonable satisfaction from the Department of Minerals and Energy that Charter 
Scorecard Credits in respect of units of production/ equity ownership will be   
granted upon Newco becoming HDSA controlled.                                    
The transactions in the shares in Lonplats and the formation of Newco are       
conditional, inter alia, on the signing of legally binding agreements between   
the parties, the approval of Lonmin shareholders (these transactions being      
related party transactions under the UK Listing Rules), completion of the       
financing of Newco and the approval of the South African competition authorities
and other relevant regulatory authorities.                                      
Lonmin and Implats will work towards the signing of legally binding agreements  
between them and Newco by 31 December 2003. The circular to Lonmin shareholders 
seeking approval of the transaction and incorporating a Notice of Extraordinary 
General Meeting, will be sent shortly after signing of the definitive           
agreements.  Subject to the  satisfaction of the relevant conditions, completion
is expected to take place by 27 February 2004.                                  
Morgan Stanley & Co. Limited and Cazenove & Co. Limited are acting as financial 
advisors to Lonmin and Cazenove & Co. Limited are advising Lonmin in relation to
the financing arrangements for Newco.                                           
A further announcement will be made in due course.                              
Sir John Craven, Chairman of Lonmin said,                                       
"This transaction will consolidate Lonmin"s position in Lonplats and end Implats
joint control of Lonplats, significantly enhancing Lonmin"s strategic           
flexibility."                                                                   
"It is a substantial foreign investment in South Africa and also underlines     
Lonmin"s support and endorsement of the South African Government"s BEE          
initiative for the mining industry."                                            
Ed Haslam, CEO of Lonmin said,                                                  
"With this transaction we will be taking the steps necessary to facilitate      
compliance with Lonplats" BEE phase one equity credentials while ensuring Lonmin
shareholder value is protected. We are laying the foundations for a prosperous, 
robust, broad-based BEE company, which will enable many HDSA"s to benefit from  
Lonplats" high quality cash generative platinum group metals assets."           
Commenting on the announcement the Minister of Minerals and Energy, Ms Phumzile 
Mlambo-Ngcuka:                                                                  
"The said assets under consideration are amongst the best in SA and in the      
world.                                                                          
Successful conclusion of a deal with a BEE partner could be one of the biggest  
transactions in the mining industry.                                            
We welcome the steps undertaken by Impala and Lonmin and we are optimistic that 
further discussions between the Department and the two companies will lead to   
compliance with the requirements of the Broad-Based Socio-Economic Empowerment  
Charter of the mining industry."                                                
Lonmin and Implats will host a joint presentation with live link up between     
Johannesburg and London scheduled at ( ) today. For details of the presentation 
please contact:                                                                 
Press Enquiries:                                                                
For Lonmin in London                                                            
Anthony Cardew/Clea Bourne                 CardewChancery                       
+44 207 930 0777                                                                
For Lonmin in Johannesburg                                                      
Jackie Range                               CardewChancery                       
+27 11 516 1313                                                                 
For Impala                                                                      
Charmane Russell/ Janet Whitaker           Russell Associates                   
+27 11 880 3924                                                                 
Analyst Meeting:                                                                
An Analyst Meeting will be held today, 18 September 2003, in London at 14:00    
(BST) and in Johannesburg at 15:00 (CAT):                                       
London Analyst Meeting:                           Johannesburg Analyst Meeting: 
Cazenove                                          Sandton Sun and Towers        
20 Moorgate                                       Jacaranda Room, Fifth Street  
London  EC2R 6DA                                  Sandhurst, Johannesburg       
+44 20 7588 2828                                  +27 11 780 5000               
This press release is available on http://www.lonmin.com                        
Morgan Stanley & Co. Limited are acting for Lonmin and no one else in connection
with the proposed transactions and will not be responsible to anyone other than 
Lonmin for providing the protections afforded to clients of Morgan Stanley & Co.
Limited or for providing advice in relation to such proposed transactions.      
Cazenove & Co. Limited are acting for Lonmin and no one else in connection with 
the proposed transactions and will not be responsible to anyone other than      
Lonmin for providing the protections afforded to clients of Cazenove & Co.      
Limited or for providing advice in relation to such proposed transactions.      
Cazenove & Co. is authorised and regulated by the Financial Services Authority  
and is a member of the London Stock Exchange.                                   
18 September 2003                                                               
Johannesburg                                                                    
Date: 18/09/2003 10:30:12 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department