Talks to end S Africa Lonmin strike break down-NUM

JOHANNESBURG, Aug 22 (Reuters) South Africa's National Union of Mineworkers (NUM) said today that talks to end a three-day strike at Lonmin's Marikana mine had broken down.

NUM members at the mine have been striking since Sunday because of a dispute over a payroll system which they claim is unfair to workers.

''Unfortunately, we were unable to reach a consensus,'' Elfas Ngoepe, a spokesman for the union told Reuters.

Ngoepe said they had been in talks with management all day and had initially reached an agreement.

''Then they (Lonmin) introduced a clause to the final agreement which was not acceptable to us. This deadlock stalled the process and for that reason we decided to adjourn,'' he said.

Ngoepe said the union was waiting to hear from Lonmin management when talks would resume.

Lonmin could not be reached for comment.

Yesterday Lonmin -- the world's third-biggest platinum miner -- said it was committed to resolving issues with NUM. It said the impact of the strike on production and sales for the year to end-September 2007 and 2008 would be reviewed once the dispute has been resolved.

Lonmin said the loss of one day's production at its Marikana mine was around 3,400 platinum ounces.

In July Lonmin cut its full-year sales forecast due to difficulties in processing lower grade ores and bottlenecks at refineries.

Lonmin's South African listed shares closed 5.48 per cent firmer at 457 rand, with the JSE blue chip TOP-40 index 2.92 per cent stronger.

South African mining firms and trade unions are in the middle of talks on new labour contracts The NUM is expected to start negotiations with Lonmin in October.

REUTERS GT RK2228