POLITICAL ECONOMY

Lonmin chair to meet with SA mines minister over violence

Susan Shabangu and Roger Phillimore are to meet on Wednesday following the outbreak of violent clashes at the group's Marikana mine that left 10 dead.

JOHANNESBURG (MINEWEB) - 

Minister of Mineral Resources Susan Shabangu will meet with Lonmin's Chairperson Roger Phillimore on Wednesday following the outbreak of violence at the Marikana mine which saw ten people killed and sent shivers down investors' spines.

Sasfin's David Shapiro told the SAfm Market Update on Moneyweb that the violence has led to questions being raised about Rustenburg as a platinum belt.

Platinum is our biggest mining export, it is expected to turn our county around, but this and the previous violent strikes at Impala, in which scores were killed and injured has dented South Africa's standing among investors, Shapiro added.

At the close of trade on Tuesday Lonmin's share price had fallen 4%, Lonmin's shafts across the South African platinum belt were closed with only essential services such as ventilation operating.

Executive Vice President for Human Capital and External Affairs for Lonmin Barnard Mokwena said, the violence has created a very negative sentiment among investors not just about Lonmin but about platinum group metals.

Mokwena said the miner is waiting to hear from police on whether to issue an ultimatum on Wednesday to get workers to return to work.

He also told Moneyweb that Phillimore is flying out from London to meet with Shabangu on Wednesday.