Lonmin to dispose of Stake in Ashanti

Platinum miner Lonmin Plc said on Thursday it had no plans to increase its stake in African gold miner Ashanti Goldfields Co. Ltd and wanted to sell its 32 percent holding when the time was right.

``As far as Lonmin is concerned, and Lonmin shareholders, Ashanti is really not important,'' Lonmin Chief Executive Edward Haslam said in an interview. ``We're platinum... and we will stay that way for the time being.''

Lonmin Finance Director John Robinson said that ``within a reasonable time frame and at a reasonable value, we're looking to realise that investment, so I'm sure we're not looking to increase it''.

Haslam said news from Ghana recently pointed to the possibility that the government might put all or part of its stake in Ashanti on the market.

"Ghana needs cash and needs cash badly, and it's looking at selling its equity in some of its businesses.

``That leads us to believe that they are probably more favourably inclined to look more commercially at the situation,'' Haslam said.

Ghana owns 20 percent of Ashanti, as well as a ``golden share'' which allows it to block any potential takeovers or mergers.

That has been a drag on its shares, which have languished under $4 since November 1999, when Lonmin withdrew a $7 per share offer for the West African firm.

The New York-listed shares its most liquid stock, closed at $2.55 on Wednesday.

The Lonmin deal collapsed because of opposition by the government for former President Jerry Rawlings.

But a new government was sworn in earlier this year, and last week the finance minister said it had proposed to international donors to sell some of its shares in businesses -- possibly including Ashanti.