By Devon Maylie
JOHANNESBURG--Police are investigating the deaths of two mine
workers outside a mine run by Forbes Coal on Wednesday, after
security guards dispersed a crowd of protesters.
Workers at Forbes Coal & Manhattan Coal Corp.'s (FMC.T)
Magdalena and Aviemore mine in Kwa-Zulu Natal, South Africa, had
gone on strike earlier this month to demand higher wages. On
Wednesday, police said a group of 100 workers gathered outside the
mine and were dispersed by security guards.
"It is alleged that some of the workers attempted to break into
an armory on the mine and they were dispersed by mine security. It
is further alleged that the security officers chased some of the
workers into an informal settlement near the mine and shots were
fired, injuring two men," said police spokesman Jay Naicker.
Colonel Naicker said both men were taken to the hospital but
later died from their injuries and that police are now are
investigating two counts of murder. Police have seized firearms
from all the security guards that were on duty as part of an effort
to find the shooters.
Forbes Coal Chief Executive Stephan Theron said in a statement
that it closed the mines and that it's "committed to the process of
responsible discussions."
The deaths come weeks after police fired live ammunition into a
crowd of protesting miners outside platinum producer Lonmin Plc's
(LMI.LN) Marikana mine, killing 34 people in some of the worst
post-apartheid violence to hit South Africa. In all, 46 people died
during the Lonmin strike.
Since the August shooting at Lonmin, violent strikes spread
across the mining industry, shutting some of the country's biggest
platinum, gold and iron ore mines. Most of the strikes have been
resolved through wage increases, but the strike continues at the
world's largest platinum producer, Anglo American Platinum
(AMS.JO).
On Tuesday, workers at Anglo Platinum's Rustenburg mines clashed
with police, who fired rubber bullets and tear gas on a group of
about 1,000 protesters. The company said 12,000 miners it had
dismissed earlier in the month and all others on strike had until
Tuesday morning to return or lose their job for good. The company
hasn't commented since Tuesday.
The strikes are not only threatening to cause more violent
uprisings outside mines, but they're threatening the country's
economy and could increase unemployment.
Lonmin this week issued a notice to unions that it will begin a
consultation process that could lead to job losses starting in
January, primarily at management levels.
And on Wednesday, government data showed that South Africa's
trade deficit widened unexpectedly to 13.8 billion rand ($1.6
billion) in September, a grim confirmation of the toll that labor
turmoil is taking on the continent's largest economy.
The trade balance added ZAR1.6 billion to a deficit of ZAR12.2
billion in August, according to data from the South African Revenue
Service. Exports fell 7.7% on the month in September, the data
showed, thanks largely to declines in the mining industry.
The sector, responsible for more than half of South Africa's
exports, already led the country's finance minister last week to
lower South Africa's growth outlook again to 2.5% this year, down
from his previous forecast for 2.7% growth in 2013.
--Patrick McGroarty contributed to this report
-Write to Devon Maylie at devon.maylie@dowjones.com