Mahomed Seedat, Lonmin's chief operations officer, is optimistic that a "mutual beneficial agreement" can be struck with the pgm producer's workers.

This is despite the National Union of Mineworkers' (NUM) demands for a 25 per cent wage increase for its members, in addition to a one-off medical incapacity payment of R20,000 for those who have been working at Lonmin for more than two years, Times Live reports.

"We also demand long-service pay of R5,000 for every five years of service and R10,000 for every ten years worked as well as a minimum wage of R4,500 for surface employees and R5,000 for underground workers," Eric Gcilitshana, NUM national health and safety secretary, told the news provider.

Explaining the reasoning behind the demands, Mr Gcilitshana said the wage levels currently seen at Lonmin "need a huge improvement".

Even so, a 25 per cent hike would represent arguably the highest wage demand made by platinum workers in this year's round of negotiations.

By way of response, Lonmin has offered a five per cent increase, and negotiations are due to begin a week on Monday.

A request to move wage negotiations from October to July 1st - thereby tying them in with those of other platinum companies - will also be discussed.

The news comes soon after a wage agreement with the NUM, the National Union of Metalworkers of SA and the United Association of SA was formally signed by Anglo Platinum.

This follows on from wage discussions in the summer when it was agreed that first-year increases will be between nine and ten per cent.

Wages will then rise by between 7.5 and eight per cent in year two, although CPI plus two per cent will be paid out if this is found to be more lucrative for the workers.

The minimum wage will also rise to R4,000 for surface and R4,500 for underground workers respectively.

Sources:

Union hits Lonmin for 25% hike (12/10/09)

Anglo Platinum Signs Wage Agreement (13/10/09)

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