Lonmin hit by "dirty underground war"

"A dirty underground war" - that's what new mining strikes in South Africa are being called.

And protests on the surface are getting pretty dirty too.

It's day two of action at Lonmin's Marikana plant - the scene of a deadly confrontation with police last year.

South African mining analyst Loane Sharp says the situation is threatening the entire country's economy.

(SOUNDBITE) (English) MINING ANALYST, LOANE SHARP, SAYING:

"Foreign investors that i speak to have the impression that the South African government has lost control of labour relations in the country. Now if you think that labour issues are the fourth most problematic factor for doing business in South Africa, you can tell that foreign investment in South Africa is being carteled."

Sorting it out won't be easy either.

Splinter trade unions are gaining numbers and a bitter turf war is underway.

At the weekend one union member was allegedly killed in a bar during a dispute between