South Africa's mine workers union on Tuesday rejected an increased wage offer from Lonmin Plc and said it was moving closer toward launching a strike at the platinum miner's operations.

A spokesman for the influential National Union of Mineworkers said in a statement Lonmin had offered to increase wages by 0.5 percent.

The NUM has rejected these offers with the contempt it deserves and feel that it is moving towards industrial action at Lonmin, Lesiba Seshoka said.

Seshoka said the union had lowered its demand to an 11 percent increase, from 12 percent previously. The union is also disputing the company's offers on housing allowances and medical aid subsidies for workers' children.

The two parties are due to meet again next Tuesday, Seshoka said.

South Africa