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STOCKS NEWS EUROPE-Platinum miner Lonmin dips as strike negotiations fall through

Shares in South African mining company Lonmin (LSE: LMI.L - news) fall sharply in London and Johannesburg after it says government-mediated talks among platinum producers and South African mining unions broke down.

Platinum prices spike to six-month high of $1,482 an ounce after the announcement.

World no. 3 platinum producer Lonmin says as of today it has lost 90,000 ounces of saleable platinum due to the strikes halting production and says it will not achieve its sales guidance for the year of more than 750,000 platinum ounces.

Other companies impacted by the strike are world's top platinum producers Anglo American Platinum and Impala Platinum (Other OTC: IMPUF - news)

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"It's clearly a negative development that companies and the unions are as far apart as they are, even after almost six weeks of negotiations," says Macquarie analyst Alon Olsha.

"The market had already revised the company's sales estimate lower but I think the fact that the strikes could continue to persist suggests there could be further downside to production and sales, which clearly will impact the company."

At 1342 GMT Lonmin shares in London are down 2.8 percent underperforming a 1 percent fall in the mining sector, in brisk trade that sees it already exceed its 90-day average daily volume.

Shares in the platinum miner in Johannesburg were down 2.7 percent.

To see Lonmin's statement please click on

Reuters messaging rm://silvia.antonioli.reuters.com@reuters.net