- Title: SOUTH AFRICA: Tight security at Lonmin mine after clashes kill 9
- Date: 14th August 2012
- Summary: RUSTENBURG, SOUTH AFRICA ( AUGUST 14, 2012) (REUTERS ) WIDE OF THE LONMIN MINE WIDE OF THE CARS POLICE VEHICLES MORE OF POLICE VEHICLES CLOSE UP BARBED WIRE POLICE ON GUARD POLICE VEHICLES DRIVING OFF MORE OF POLICE MEMBERS WALKING ABOUT LOCALS AND MEDIA ON THE SITE MORE OF POLICE POLICE HELICOPTER ON THE GROUND MORE OF POLICE MEMBERS ON GUARD
- Embargoed: 29th August 2012 13:00
- Keywords:
- Location: South Africa
- Country: South Africa
- Topics: Business,Industry
- Reuters ID: LVACLFXGGQEA4F3MJ7DQ52ND1Q1E
- Story Text: Shares in world No. 3 platinum producer Lonmin dropped almost 5 percent in London and 4 percent in Johannesburg on Tuesday (August 14) 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 kilometres (60 miles) northwest of Johannesburg. Two policemen were among those killed in the violence.
The mine is part of Lonmin's Marikana operations, which produced 1.3 million ounces of platinum group metals in 2011. Company officials could not say how much production had been lost but they are expected to update the market later this week.
"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.
Nine people - two police officers, two security guards, three protesters and two other men - have been killed since violence erupted at the mine on Friday (August 10).
At least three people were killed in a similar round of violence in January that led to a six-week closure of the world's largest platinum mine, run by Impala Platinum.
The whole platinum sector is grappling with declining world prices for the precious metal and a surge in union militancy in South Africa, home to 80 percent of known reserves.
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).
Lonmin has also called for an end to the violence, following an illegal work stoppage and protest march by about 3000 Lonmin rock drill operators.
The trouble began on Friday with an illegal strike by 3,000 rock drill operators at Western Platinum mine, echoing previous incidents when AMCU has tried to recruit NUM members.
January's stoppage at Implats also started with an illegal strike by rock drillers.
NUM and Lonmin officials told Reuters workers who wanted to report for duty were being intimidated. AMCU has faced the same allegations elsewhere but has always denied them.
Trade union Solidarity, which mostly represents skilled white workers, said three of its members had been assaulted and severely injured when they tried to report for duty.
It said if Lonmin could not guarantee the safety of its members it would instruct them not to go to work, a situation which would cripple the Western Platinum operations.
The AMCU/NUM rivalry, which has already caused friction at Lonmin's Karee mine, has now spread to other shafts at a time when the company is cutting back on investment plans in the face of weak demand and shrinking margins.
The challenge to the dominance of the 300,000-strong NUM also has political ramifications given its role as a key support base for the ruling African National Congress. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None