Impala Platinum, the world's second largest producer of platinum, and the National Union of Mineworkers (South Africa) announced on Friday that they have agreed a two-year wage settlement.

A total of 90 per cent of workers at the company's Rustenberg operations and 44 per cent of employees at its refineries are covered by the agreement.

The settlement guarantees workers a 9.5 per cent increase on package in the first year, plus an increase of 1.5 per cent above CPIX in the second year.

If that figure is less than 7.5 per cent or more than nine per cent, both the NUM and Implats have the right to reopen negotiations on wages.

Underground workers are to have their minimum monthly package boosted to R3,000 over the course of the agreement, with the promise of R2,765 for the first years of its operation.

Other elements of the agreement relate to working time and conditions, including the company's contribution to employees' provident funds, leave allocation, medical provisions, accommodation and shift patterns.