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'Chief' bids to buy Lonmin

A Lonmin mine shaft in Brits, North West. The mining company has been battling high operating costs in recent years and is considering selling.
A Lonmin mine shaft in Brits, North West. The mining company has been battling high operating costs in recent years and is considering selling.
Image: THULANI MBELE

A R6-billion audacious offer to acquire the embattled Lonmin mining company has been made, apparently on behalf of the impoverished Bapo-ba-Mogale community in Brits, North West.

The offer was made by Chief Julius Mogale, whose position as the community's traditional leader is disputed.

Mogale was one of the people claiming the chieftaincy through the Maluleke Commission set up by premier Supra Mahumapelo to investigate the tribe's contested chieftaincy, among others.

The troubled mining company has been battling high operating costs in recent years, forcing it to consider selling.

Mogale made the daring bid to take over the mines in a letter addressed to the Lonmin board chairman in London and both CEOs of the London and the Johannesburg stock exchanges in December.

Mogale said the sale would help address challenges faced by his poor community, which was currently not represented on the Lonmin board.

"I, as the leader of the owners of the land - Bapo-ba-Mogale - hereby offer, on their behalf, to purchase all the shares of Lonmin Plc for a total price of ZAR6-billion as an outright purchase and a going concern with immediate effect," Mogale wrote.

The letter said Bapo-ba-Mogale currently owned about 2.5% of Lonmin shares.

The troubled community has earned millions of rands in royalties subject to numerous disputes between factions within the traditional council which is tasked with managing the funds.

Last year, a public protector probe found that at least R600-million in mining rights royalties for the community had been pillaged without any accountability.

Bapo-ba-Mogale Tribal Authority spokesman Vladimir Mogale yesterday said the offer neither represented the community nor the royal family.

"Firstly, Julius Mogale is not the paramount chief of Bapo-ba-Mogale, and we don't know anything about the offer."

Joseph Mathunjwa, president of the majority labour union at Lonmin, Amcu, said workers had also "unanimously resolved" to put in an offer to acquire the company.

"After Lonmin announced the Sibanye-Stillwater offer, we convened an urgent meeting with the workers who unanimously resolved that they would like to acquire the company." He said the workers had envisaged using their provident funds to buy it.

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