Xstrata Stills Sees Value in Lonmin Investment

(REUTERS) -- Global miner Xstrata said on Tuesday it still saw value in its investment in Lonmin, despite a significant underperformance in the platinum producer's share price against the sector this year.

Xstrata owns almost 25 percent of Lonmin, after a 2008 cash bid was derailed by the financial crisis.

"It is not earning a return commensurate with what the cash should earn," Xstrata Chief Executive Mick Davis told analysts.

"We still believe Lonmin represents a significant amount of value, we just don't know at the moment how to capture that value. When we work that out we will let you know."

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