Striking workers at Lonmin's Marikana operations are to return to work on Thursday after a settlement was reached late on Tuesday night.

The agreement includes a signing bonus of R2,000 and an average rise in wages of between 11% and 22% for all employees falling within the "Category 3-8" bargaining units, effective from 1st October 2012. This includes the previously agreed 9-10% rises for these employees due to come into effect in October 2012. It also addresses issues of promotion for some categories of workers as well as other allowances.

The company, which was in danger of breaking its banking covenants if the strike had continued, will update the market on the wider implications of the agreement, including its financial impact in due course, the company statement said.

Acting Chief Executive Simon Scott said: "These have been difficult and tragic weeks for everyone involved with the company, the communities living around our operations and the South African nation as a whole. Tonight's agreement and the subsequent return to work is only one step in a long and difficult process which lies ahead for everyone who has been affected by the events at Marikana, but it is essential in helping secure the futures of our tens of thousands of employees and all those who rely on Lonmin in the region."

JH

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