2nd UPDATE: Lonmin Signs Peace Accord, But Key Groups Absent

-- Lonmin signs peace accord with some unions

-- AMCU, worker representatives don't sign agreement

-- Lonmin says it will now meet with all parties to negotiate wage demands

(Adds platinum market repercussions, union background.)

By Devon Maylie

JOHANNESBURG--Lonmin PLC (LMI.LN) said Thursday that it has signed an agreement aimed at ending a near four-week platinum mine strike with a promise to begin wage talks, but two key signatories were missing, undermining a government-backed attempt to end a violent stoppage that has left 44 people dead.

Several unions and Lonmin management signed a "peace accord," agreeing to end the violence and for the workers to return to the Marikana mine by Monday. Lonmin said that once production has resumed it would sit down with all parties to begin discussions on workers' demands for salaries to be increased to 12,500 rand ($1,488) a month, nearly a tripling of what protesters say they currently make.

However, workers' representatives and the Association of Mineworkers and Construction Union--two key groups that have the collective ear of the striking miners--didn't sign the accord. AMCU declined to explain why it didn't sign the agreement and said it would only speak Friday about the decision.

AMCU has campaigned as a new voice in labor discussions. It has pitched itself as being independent from both political groups and company management, which are criticisms levied by workers against the country's main mine union, National Union of Mineworkers.

The strike at Marikana began Aug. 10, when 3,000 rock drillers downed tools to demand higher wages. Over the following days clashes between workers left 10 dead, culminating in a mass protest when police fired into the crowd, killing 34. Workers at the mine said this week they won't return until they have promises of a wage rise.

Lonmin said it remained "hopeful" that AMCU and worker representatives will sign the accord and join in the talks to negotiate wages. The wage talks will be an "addendum" to the current two-year wage agreement that ends in 2013.

"Lonmin and the other unions who are part of our bargaining council have agreed to negotiate to address the wage demands...and have invited AMCU and a delegation of workers' representatives to take part...we simply ask that those negotiations happen in an environment free of intimidation and violence," Lonmin acting chief executive Simon Scott said.

Fewer than 2% of workers reported to Marikana Thursday, amid reports of widespread intimidation, and production remains stopped at the world's third-largest platinum producer.

The disturbances at Marikana have rocked the country and its presidency, and many say the troubles herald a changing dynamic in the labor movement that has wider implications for South Africa.

Marikana is a "warning sign...perhaps a bomb that is beginning to explode," said Zwelinzima Vavi, general secretary of the country's largest union federation, Cosatu.

Indeed, strikes have spread to other platinum and gold mines--Impala Platinum Holdings Ltd. (IMP.JO) said it received new wage demands over and above an agreement struck following a strike in February.

Unrest has been fanned by Julius Malema, the expelled youth league leader of the ruling African National Congress who has visited sites to address striking miners. He was due to speak to protesters at Marikana Thursday, but delayed his visit due to rain.

Such support has been causing concern. Minister for the presidency, Collins Chabane, Wednesday said: "irresponsible and inflammatory statements made by some in our society...does not assist during this difficult period."

The strike has also affected the price of platinum, which has rallied in recent weeks amid concerns that supply of the metal will be constrained. Since the Lonmin strike began, the spot price of platinum in Europe has surged around 14%, hitting a four-and-a-half-month high at $1,587 an ounce Thursday.

Production cuts and strikes in South Africa may have led to a loss of 380,000 ounces of platinum supply to the market this year, said Deutsche Bank. While the bank continues to forecast a modest market surplus this year, any oversupply could be wiped out if operations remain shut, it said.

-Francesca Freeman in London contributed to this item

Write to Devon Maylie at [e-mail]