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South Africa: 2 mines re-open despite continuation of labor unrest
Police raided a Lonmin hostel on Saturday and seized weapons from strikers. They later used rubber bullets and tear gas to disperse groups of protesters.
Lonmin said mining activity at Marikana remained minimal and lowered its full-year production guidance to between 685,000 and 700,000 saleable ounces from 750,000 ounces.
Lonmin said on Monday it was temporarily closing its K4 shaft. That ends a contract with construction group Murray & Roberts that supplied about 1,200 staff to that shaft.
On Friday, workers at the mine dismissed an initial Lonmin offer as way below the 12,500 rand (US$1,500) a month sought by members of the militant Association of Mineworkers and Construction Union (AMCU), which is challenging the influence of the more established NUM.
Lonmin, which is offering increases of between 9 and 21 percent, said 12,500 rand (US$1,500) would put thousands of jobs at risk and challenge the viability of the business.
The ruling African National Congress (ANC) has become increasingly worried about the impact of the unrest on the wider economy.
Finance Minister Pravin Gordhan said it could be “extremely damaging”, although in an interview with Reuters on Sunday he said there was no need yet to revise the outlook for the country’s fiscal performance for this year.
