The world's third largest platinum producer, Lonmin, has announced it is to engage in mediation with South Africa's National Union of Mineworkers (NUM).

Strike action was initiated at Lonmin's Marikana operations on August 19th, but the firm reported ten days later that the majority of workers had returned to the mine and that it would be working with the NUM to tackle the underlying causes of the industrial action.

The company has now said it will enter into mediation with the NUM, which will help Lonmin to stave off any further strike action until at least the middle of October.

Under the terms of the mediation, strike action by the NUM is now prohibited until October 15th when the mediation is scheduled to be concluded.

The recent industrial action at the Marikana mine is estimated by Lonmin to have cost it in the region of 30,000 oz of platinum.

Sources:
Brixton, Standard Life, Paddy Power: U.K., Irish Stock Preview, 4/09/07
http://www.bloomberg.com/apps/news?pid=20601102&sid=am7CNiJTohUQ&refer=uk

European Market Update, 4/09/07
http://www.rttnews.com/FOREX/EuroMkt.asp?date=09/04/2007&item=1
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