Lonmin shares drop

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Lonmin violence 3

REUTERS

A policeman collects weapons that were supposedly used by protesting miners after they were shot outside a South African mine in Rustenburg, 100 km (62 miles) northwest of Johannesburg, August 16, 2012. South African police opened fire on Thursday against thousands of striking miners armed with machetes and sticks at Lonmin's Marikana platinum mine, leaving several bloodied corpses lying on the ground. REUTERS/Siphiwe Sibeko

The bloodbath at Lonmin's Marikana Mine has led to a drop in the company's share price, the Guardian reported on Friday.

It said Lonmin's shares dropped almost five percent in London and four percent in Johannesburg as the world's third-biggest platinum producer shut down in South Africa after the violent clashes.

Lonmin executives said all its shafts across the South African platinum belt, which account for 12 percent of global supply, were closed to all but essential services, such as ventilation.

Although the price of platinum had fallen steeply in the past six months, the spot price rose two percent on Tuesday in the wake of the violence, The Guardian reported.

Lonmin executive vice-president Barnard Mokwena was quoted as saying: “Until the place is safe we don't want to talk about production.”

South Africa accounts for about three-quarters of the world's platinum, which is used to make catalytic converters in cars.

London-based Lonmin told the Guardian that 96 percent of its production comes from Marikana.

The National Union of Mineworkers said on Friday that 36 people were killed on Thursday afternoon, when police opened fire on protesters gathered at a hill near the mine.

Another 10 people - including two police officers, two security guards and three NUM shopstewards - have been killed since the start of workers' illegal strike last Friday. - Sapa


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