Lonmin shares rally as Marikana strike ends

Shares in Lonmin, the world's third-biggest platinum producer, rallied here on Wednesday after workers at South Africa's Marikana mine agreed to end their strike.

At about 0725 GMT, Lonmin shares surged 8.99 percent to 708.4 pence on London's second-tier FTSE 250 index. The stock has however slumped by almost 30 percent since the start of the year.

Lonmin platinum mine workers in South Africa on Tuesday ended their strike in return for pay rises of up to 22 percent, after a nearly six-week standoff that claimed 45 lives.

Under a deal hammered out after more than three weeks of talks, and signed late Tuesday by both sides, the miners will go back to work at 7:00 am (0500 GMT) Thursday in return for raises of between 11-22 percent plus bonuses.

The industrial action that started on August 10 and spread to other platinum and gold mining companies had sparked social turmoil and fears about the economic impact on Africa's wealthiest country.

Amid the bitter standoff, police opened fire on striking miners, killing 34 on August 16 in the worst such shooting since the end of apartheid.


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