Lonmin has announced that it has launched an issue of approximately US$200 million of unsubordinated unsecured Convertible Bonds.

The bonds, which include allowance for an over-allotment option of up to approximately $10 million, are due 30 September 2008 and will be convertible into ordinary shares of Lonmin.

The bonds are expected to be priced later today and settlement is expected on or about 30 September 2003.

If not converted or previously redeemed the bonds will be redeemed at par on 30 September 2008.

The net proceeds of the issue will be used by Lonmin for general corporate purposes and the reduction of other debt.

In a statement Lonmin said the issue would help the firm stay on track for its targets.

'As a consequence, the reported profitability of the Group anticipated for the current financial year will continue to reflect the trends noted at the interim stage as compared to the performance last year and is in line with management's expectations,' the firm explained.