JOHANNESBURG (miningweekly.com) – Wage negotiations at the world’s third-largest platinum company, Lonmin, officially started this week.

Trade union Solidarity said on Tuesday that it was demanding a 10% wage increase for mineworkers, artisans and officials as well as a market-related increase in the housing allowance of these employees.

The National Union of Mineworkers (NUM) is demanding a 25% wage increase from Lonmin, which is offering a 5% across-the-board increase.

Solidarity said that the first official round of negotiations would be held on Wednesday and Thursday.

Spokesperson Jaco Kleynhans said that the union’s demand was in line with increases that were already reached elsewhere in the mining industry this year.

“Solidarity has already reached agreements in the Chamber of Mines’ coal and gold sectors for increases of between 9% and 11%, and in the platinum sector an increase of 9% was reached at Northam Platinum. From this it is clear that the mining industry, and platinum mines in particular, can in fact afford good increases this year.”

Solidarity maintained that Lonmin was in a position to comply with the trade union’s demand, as the platinum producer’s production report for the third quarter of 2009, and the interim management report for the period to June this year indicated that its underground production for the first nine months of the 2009 financial year exceeded that of 2008, while operational costs were more positive.

In addition, the company’s platinum sales for the first nine months of the 2009 financial year rose to 490 347 oz, 4% higher than sales in the corresponding period in 2008.

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