The new chief executive of Lonmin, the world's third largest primary platinum producer, has received shares worth £2.2 million as part of a 'golden hello' package.

The deal aims to compensate Brad Mills for the bonuses he sacrificed when leaving BHP Billiton to join Lonmin back in March, The Times reports.

A spokesman for the company explained it was a relatively common practice and was often necessary to attract top executives.

While the firm refused to reveal details of Mr Mills' remuneration package it confirmed that he had been issued with 124,362 shares worth £1.2 million to be held in trust for three years.

A further 104,689 shares worth £993,500 will be issued to Mr Mills if Lonmin meets certain criteria under his tenure.

Lonmin announced a 25 per cent fall in half-year profits to $117 million last week, attributing the decrease to the weak US dollar and smelter start-up costs.

It operates mines in the Marikana district in the North West Province of South Africa, while its refinery is situated in Brakpan in Gauteng Province.