Lonmin shares up as wage deal looks possible

published 3 September 2012

Shares in Lonmin, one of the world's biggest platinum producers, rose on Monday after reports the firm had agreed details of a wage deal with striking miners.

Work on the company's Marikana project in South Africa has been at a standstill for three weeks after a pay dispute turned violent, culminating in a bloody showdown with police that left 34 miners dead.

South Africa's Labour minister Mildred Oliphant said Lonmin's bosses and miners had agreed in principle to sign a two-year wage agreement.

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But one union was quick to pour cold water on the news, saying there was no guarantee the 3,000 workers on strike would give up the action.

"I don't share the same optimism," said Gideon du Plessis of the Solidarity trade union.

"The workers have made it clear that they will not go back to work until such time that their wage demands are met."

The mine workers are demanding a monthly salary of R12,500 - around £950 and double what they earn at the moment.

The pay dispute at the mine and the violence that followed was stoked by tensions between rival trade unions, the National Union of Mineworkers and the recently-formed Association of Mineworkers and Construction Union.

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