On Saturday Exxaro Resources announced that an agreement was reached with the National Union of Mineworkers and work would resume on Monday.

Workers at six of the company’s operations embarked on strikes from March 5, demanding that they be paid production bonuses.

“The employees will each be paid a minimum 2800 rand ($US301) in respect of quarter one of the company’s 2013 short-term incentive,” the company said.

Exxaro said the payment was not a production bonus.

Last week, as protests turned violent, Exxaro offered striking workers a R2000 ($US216) cash offer but it was turned down.

The deal “has averted the possible negative effect that a prolonged strike could have had on Eskom’s electricity generation and the country’s economy”, the company said.

The stoppage of production at the mines put pressure on state utility Eskom, which uses coal to generate 85% of South African electricity.

With Exxaro the second-largest supplier of coal to Eskom there were fears the strikes would eventually lead to an electricity shortage and blackouts.

“The focus at the operations now will be to restart operations as soon as possible after employees have returned to their duties and undergone safety and training interventions,” Exxaro said.