Xstrata still betting on Lonmin

London - Global miner Xstrata said on Tuesday it still saw value in its investment in Lonmin [JSE:LON], despite a significant underperformance in the platinum producer's share price against the sector this year.

Xstrata owns almost 25% 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 CEO 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."