Lonmin dragged to court over black-ownership deal
A rural organisation has requested a legal review of a deal in which Lonmin, the world’s third-biggest platinum producer, sold a stake to a local community.
Lonmin in July agreed to pay the Bapo ba Mogale traditional community R564 million for the group to waive rights to royalty payments.
The Bapo agreed to buy Lonmin shares with the funds, as the company aimed to meet a 26% blackownership threshold.
But the Bapo’s traditional council didn’t have the authority to conclude the deal with Lonmin and the deal lacked procedural fairness and transparency, according to Julius Ramaboa, chairperson of the Serodumo Sa Rona community organisation and the main applicant in the court process.
“One of our primary concerns is that nearly nothing is known by the community at large about the terms of the transaction or its consequences,” Ramaboa said.
According to Lonmin, the court application was initiated by a small minority with vested interests.