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South Africa's biggest mineworkers' union said on Wednesday it agreed a wage deal for its members at Exxaro after it issued a warning in July that it was ready for "a big fight" over a wage dispute.

The National Union of Mineworkers (NUM) said its members would receive a wage increment of 13.5 percent and 11.5 percent for workers in the lower and higher categories respectively.

The workers also received an increase in their housing allowance, allowances for working on a continuous basis and maternity benefits.

"It has been a very tough negotiation cycle," NUM negotiator Eddie Majadibodu said. "We lodged a dispute with the (arbitrator) and we were ready for industrial action."

Diversified mining group Exxaro, the country's top black-owned miner, mainly produces coal and has a stake in an iron ore producer.

(Reporting by James Macharia; editing by Christopher Johnson)

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