Shares in stricken miner Lonmin surged on Wednesday after the company announced it had struck a deal to end a month-long strike by workers.

The stock rose over 9% in early trading after Lonmin said striking miners at its Marikana operations would return to work on Thursday.

Platinum prices also dipped slightly, having risen 15% over fears of a drop in supply.

However, there are now fears in the industry that the deal will encourage further unrest by rival miners also seeking better wages.

An organiser with the militant Association of Mineworkers and Construction Union at Lonmin rival Impala Platinum told Reuters news agency that miners wanted R9,000 a month as a basic wage instead of the R5,000 they are currently getting.

The Lonmin agreement, struck on Tuesday night, includes a signing bonus of R2,000 and an average rise in wages of between 11% and 22% effective from the start of October.

This includes previously agreed rises of 9-10% for employees due to come into effect in October.

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, its statement said.

Acting Chief Executive Simon Scott said the protests, which led to the deaths of 45 people, had 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," he said.

"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."

Mining accounts for about 20% of South Africa GDP and the country is home to 80% of known reserves of platinum.

Platinum is widely used in industry, including in catalytic convertors in cars, fibre optic cables, LCD displays, and paints.

Related share prices
Lonmin (LMI) share price
Impala Platinum Holdings Ltd. (IPLA) share price