South Africa's National Union of Mineworkers (NUM) has rejected the latest pay offer from Lonmin, the world's third largest primary platinum producer.

The union is demanding an 11 per cent hike in wages, while the miner offered between nine and ten per cent over two years, depending on the category of the worker.

In a statement reported by Reuters, the union said: "The NUM rejected these on the basis that it may be prepared to accept the offer provided that the ten per cent is extended to category 4 for both years."

Last week, NUM spokesman Lesiba Seshoka said strikes could be forthcoming if a pay deal could not be agreed. The next stage before legal industrial action is government mediation.

Lonmin produced 721,000 platinum ounces in the last financial year and targets output of 750,000 oz in the 2011/12 financial year.

An illegal strike at its Karee operations in May impacted the production figures and further industrial action could mean the miner misses its 2011/12 target.

Sources:

S.Africa's union says rejects Lonmin wage offer (22/11/11)

S.Africa union rejects Lonmin offer, eyes strike (15/11/11) 

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