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Johannesburg - Shares of the world's third biggest platinum
producer Lonmin [JSE:LON] dropped almost 5% in London and 4% in Johannesburg on
Tuesday after violence caused by union infighting disrupted operations and
killed 9 people at a South African mine.
Police reinforcements including armoured vehicles were
deployed at the Marikana operations about 100 km northwest of Johannesburg. Two
policemen were among those killed in the violence.
“Production has been severely disrupted since Friday 10 August
as a result of an illegal strike by rock drill operators and increased
incidences of violence and intimidation since then,” the company said in a
statement.
“Lonmin will make further announcements as matters develop
and as the impact on production and operations becomes clearer,” it added.
The violence which has spread from other mines is the
deadliest so far involving a struggle for membership between the dominant
National Union of Mineworkers (Num) and the upstart Association of Mineworkers
and Construction Union (AMCU).
North West premier
Thandi Modise called for an end to violent clashes at Lonmin's Marikana mine on
Tuesday.
"We call for (the) cessation of hostilities and for a
return to the negotiation table," she said in a statement.
Modise sent her condolences to the families of the nine people killed since violence erupted at the mine on Friday.
"Survival of the fittest, anarchy and lawlessness
shouldn't characterise wage negotiations in the mining sector," she said.
Modise hoped additional police deployed to monitor the area
would bring the situation under control.
Congress of the People labour spokesperson Papi Kganare
appealed to the unions and Lonmin to amicably resolve the dispute.
"Cope strongly condemns the use of violence by a
section of certain mine workers to prevent others from exercising their
democratic right to demonstrate peacefully..."
He described the killings at the mine as "selfish and
barbaric" and encouraged the police to find the perpetrators.
Kganare urged the unions "to adhere to and uphold
democracy and freedom of association and other freedoms enshrined in the
Constitution of the Republic".
He said Labour Minister Mildred Oliphant needed to
intervene.
"Her silence on this issue is deafening."
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