Lonmin counts cost of strikes and violence

Global platinum powerhouse Lonmin says strikes at its mines in South Africa have reduced full year production expectations and increased unit costs, as violence continues.

In a statement released on Monday morning the company says the number of people who have died in clashes since the strikes began at its Marikana facility on August 10th has risen to 45, with the discovery of the body of a 51 year old worker last week.

The miners are demanding annual wages of 12,500 rand but several unions and some non-unionised workers are involved in the dispute making a resolution difficult.

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A "peace accord" has now been signed with several parties including the NUM, UASA and Solidarity, but the AMCU and non unionised workers have refused an agreement.

The net result of the industrial action is that sales will come in at between 685,000 and 700,000 ounces of platinum by the year's end in September. Unit costs will rise 8.5%.

Lonmin shares were steady on the news but have still fallen 17% since the strikes began.

BS