Lonmin's chief stands down due to ill health

South African miner Lonmin opened the search for a new chief executive to revive its fortunes after Ian Farmer, who is being treated for a serious illness, officially stepped aside yesterday.

The absence of a permanent chief executive has been a major concern cited by investors after months of financial pressure, weak platinum prices and a wave of deadly strikes at South African mines.

Farmer was admitted to hospital in August, coinciding with a wave of unrest at the group’s Marikana mine that left 46 people dead and paralysed operations.

The company was already being squeezed by high costs and weak platinum prices.

Lonmin was forced to turn to investors in November in order to raise $817 million to avoid breaching lending terms. – (Reuters)