Lonmin shares drop after mine violence

2012-08-14 10:28

Shares of the world’s third-biggest platinum producer Lonmin dropped almost 5% in London and 4% in Johannesburg after violence caused by union infighting disrupted operations and killed 9 people at the North West mine.

Police reinforcements including armoured vehicles were deployed at the Marikana operations about 100km northwest of Johannesburg. Two police officers 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 and the upstart Association of Mineworkers and Construction Union.

– Fin24

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