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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
UK property market forecast: where are house prices heading?House prices have climbed in the past few years, but the long-term outlook for the housing market is poor, says Max King
-
Next-generation dividend heroes: the top-yielding investment trusts of the future?The Association of Investment Companies has published its updated list of next-gen dividend heroes. We look at the trusts that made the cut
