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LON - Lonmin - Number one furnace shut down

Release Date: 18/12/2006 16:13
Code(s): LON
Wrap Text

LON - Lonmin - Number one furnace shut down 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") Number One Furnace Shut Down Lonmin announces that a leak has occurred adjacent to one of the matte tap holes in its number one furnace. The furnace has been shut down and no one was hurt as a result of the leak. We currently believe that the necessary repairs to the furnace will take around 30 to 40 days. During this time we will run our three Pyromet furnaces and build up concentrate inventory ahead of the Smelter. We currently have no plans to sell additional concentrate over and above our current commitments. In the second half of 2006 in order to provide additional smelting capacity and as a back up to the number one furnace we took a decision to recommission our Merensky furnace. We plan to run this in parallel with the number one furnace in the second half of our 2007 financial year to reduce accumulated concentrate inventory and allow us to mitigate the impact of the number one furnace outage on production. Our best current estimate is that our production for the first half of the 2007 financial year will be reduced by between 30,000 and 40,000 ounces of Platinum. We will use our best endeavours to recover these Platinum ounces in the second half of the financial year. Enquiries: Alex Shorland-Ball +44 (0)207 201 6060 or Vice President, +44 (0)7917 038 684 Investor Relations & Communications Date: 18/12/2006 16:13:14 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.

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