South African platinum miner Impala Platinum (Implats) has sealed a deal with the country's largest union.

The world's second biggest platinum producer has signed an agreement with the National Union of Mineworkers (NUM) and United Associations of South Africa (UASA) to settle the wage dispute.

There had been threats of a potential strike by the union if agreement had not been reached, but Implats confirmed on Thursday that it had sealed a two-year deal to deliver a six to 6.5 per cent increase in wages in the first year, with the same increase for the second year.

Implats also agreed to various amendments to other benefits in the first year, but the agreement represents a compromise by both sides, after the NUM had originally demanded a ten per cent wage increase.

The move will provide welcome relief for the platinum industry, which had been concerned about the possibility of industrial action, following last year's strike against both Implats and Angloplat, which results in a surge in platinum prices.

Ÿ DeHavilland Information Services plc