Strike-Hit Mining Firm Plans $800m Rights Issue
South African miner Lonmin has said it plans to raise $800m (£498.6m) in a rights issue after violent strikes hit output.
The world's third-largest platinum miner said production slumped by over 45% in the last three months after a long period of unrest, and warned it would miss its output target for this year.
New shares could be issued, the company warned, adding that it had extended its debt facilities to help it avoid a possible covenant breach next year.
"With the standby underwriting and amended debt facilities signed we have taken two decisive steps on our way to delivering that and we are confident about our financial security," company chairman Roger Phillimore said in a statement.
In August, police killed 34 striking miners at Lonmin's Marikana mine, which sparked protests and further industrial action across the country.
Staff have since returned to work and Lonmin says the ramp-up in production is going better than expected.
But elsewhere the South African mining industry continues to battle the worst industrial action it has seen for decades.
Officers have fired rubber bullets in clashes with miners from Anglo American Platinum (Amplats) - as around 1,000 workers defied an ultimatum to return to work.
Police spokesman Dennis Adriao said "police used tear gas, stun grenades as well as rubber bullets" to disperse the strikers.
Thousands of workers from Amplats - the world's largest platinum producer - were sacked earlier this month for taking part in an illegal strike, but were told they could get their jobs back if they returned to work on Tuesday morning.
The workers said they would not go back until their pay demands were met.