Fin24

Lonmin shares jump 9% on pay deal

2012-09-19 10:08

Johannesburg - Platinum producer Lonmin [JSE:LON] opened more than 9% higher in Johannesburg after striking miners at its Marikana mine accepted pay rise offer of up to 22%, ending a six-week strike.

By 07:05 GMT, Lonmin's shares were up 9.03% at R94.32, compared with a 0.48% rise in the All Share [JSE:J203] index, which hit a new high.

The Commission for Conciliation, Mediation and Arbitration (CCMA) confirmed the end of the Lonmin Marikana strike on Tuesday.

"Worker representatives informed us this evening that agreement has been reached, and they have signed the agreement. They have accepted Lonmin management's latest offer and will return to work on Thursday 20 September," said CCMA director Nerine Kahn, whose organisation facilitated the negotiations.

The CCMA expressed its appreciation to all parties involved in the Lonmin wage dispute for their contribution to developing a mutually acceptable settlement.

"It was tough, but it was worth it," said Kahn after receiving copies of the agreement.

"Among other things, the Lonmin agreement affirms the importance of a structured approach to managing workplace disputes," she said.

Lonmin also confirmed the news in a statement, and said the company will update the market on the wider implications of the agreement, including its financial impact in due course.


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