South African troops disperse mine protest

South African troops have been deployed to crack down on the rebellion at Lonmin's Marikana mines ahead of crucial talks between the London-listed company and its striking workers.

More than 150 soldiers were sent to support police officers to disperse a march by hundreds of miners demanding better pay. Plastic bullets and tear gas were reportedly used by police at Marikana, where 45 people have been killed since the strike started last month.

On Friday, Lonmin and rival miners, including Anglo American, welcomed an announcement by the South African government that it would "not tolerate" the violent strikes any longer.

Tensions mounted over the weekend as Lonmin said it could not afford to improve a pay offer that one workers' union rejected on Friday.

The Association of Mineworkers and Construction Union (AMCU) said the undisclosed pay rise offered by the company fell far short of the 12,500 rand a month it has demanded. After failing to find a resolution last week, talks are due to resume on Monday.

The dispute is thought to have cost Lonmin more than pounds 100m in lost production, according to research for the Daily Telegraph. Analysts said the FTSE 250-listed group is believed to have missed out on revenues from 2,000 ounces of platinum a day, worth between $147 million  and $165 million.

The damage could rise to $290 million in lost revenues, compounding financial strain at the group. In August, Lonmin admitted it could breach its banking covenants when they are tested at the end of this month.