Impala Platinum announced yesterday (September 18th) that it has signed a conditional memorandum of understanding (MOU) with Lonmin, setting down the terms of Implats's sales of its 21.7 per cent holding in Western Platinum and Eastern Platium (Lonplats).

At present, Lonmin has a stake amounting to 72.9 per cent of Lonplats, which is Lonmin's major operating subsidiary.

The $800 million move will simplify the structure of the two companies and prepare the ground for a future empowerment transaction, as well as direct more of Lonmin's assets to South Africa.

Implats will sell 18 per cent of Lonplats to Newco, a new company to be formed by Lonmin and Implats. 'Historically disadvantaged South Africans' will be offered a controlling stake in the venture.

Peter Joubert, Implats chairman, said 'the transaction has the potential to be another step in Implats's continued rationalisation of its structure in line with the objectives we have set ourselves to unlock shareholder value.'

South African minister of minerals and energy Phumzile Mlambo-Ngcuka said 'the assets under consideration are amongst the best in the world. Successful conclusion of a deal with an empowerment 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 empowerment charter.'