Lonmin now seeks $1 billion rights offer backed by Xstrata

Reuters reports Lonmin is considering a $1 billion rights issue starting as early as September with major shareholder Xstrata saying it will put up part of the cash.

The news first reported by the London Sunday Times follows the closure of Lonmin's Marikana mine in the NorthWest province of South Africa after clashes between rival unions and police left 44 dead.

Lonmin has so far lost seven days of production which translates into output losses more than 15,000 platinum ounces. Marikana produces 12% of the world's platinum.

RELATED NEWS:

Exclusive Analysis: Platinum violence could spread to South Africa's coal, iron mines – gold safe for now >>

Lonmin to miners: Rock up for work on Monday or you're fired >>