The sale of platinum miner Lonmin is still a distinct possibility following the implementation of a strategic review by the company chairman.

Sir John Craven announced details of the review after discussion with some of the firm's leading shareholders, including Threadneedle and Prudential.

Whilst the firm insists that no decision has yet been taken and that the review is a standard procedure, the announcement has further heightened speculation among industry observers that a sale is now imminent.

Lonmin has seen its share price strengthen in recent weeks, with investors speculating that the firm is a ripe takeover target for South African mining heavyweight Anglo American.

One investor quoted by the Telegraph commented: 'They have been very straightforward about the choices they face and have made clear that they are looking at all the options including a takeover or merger.'

The firm says it is not looking at potential acquisitions at present, as Craven anticipates the commodity cycle reaching a peak, and is currently examining a series of options available to it.

Selling up is one of the prime choices, but analysts say there are other alternatives. These include a diversification of the business through a merger or to pay out substantial sums of currency to shareholders.

These alternative options may attract greater scrutiny because of the potential sticking point for any immediate sale - any transaction of Lonmin would probably only occur after the firm has complied with black economic empowerment legislation.

This would require the sale of an 18 per cent stake in the company to a new vehicle, a process which is expected to take place later this year.