Platinum Rises as Strike May Crimp South African Production

By Dave McCombs

Dec. 4 (Bloomberg) -- Platinum futures gained for a fourth day in Asia as South Africa's biggest labor union started a nationwide strike to protest fatal mining accidents and the government said it would probe the industry's practices.

The government will check about 700 mines, Chief Inspector of Mines Thabo Gazi said yesterday. He declined to say when the process would start. South Africa supplies about 80 percent of the world's platinum.

``Whenever supply starts to tighten, the price will react,'' Jonathan Barratt, managing director of Commodity Broking Services in Sydney, said today by phone. ``Anytime there is news about mine strikes or shutdowns, you get fund managers dipping more into the market, and that's what you've got today.''

Platinum for October delivery rose 15 yen, or 0.3 percent, to close at 5,027 yen a gram ($1,418 an ounce) on the Tokyo Commodity Exchange.

The metal for immediate delivery rose to $1,461.75 an ounce, a 0.1 percent gain from late yesterday in New York. Palladium was 0.5 percent higher at $348 an ounce.

South Africa's Solidarity trade union spokesman Reint Dykema yesterday estimated the government's safety review may take between three months and a year.

Mining deaths in the country, the world's biggest producer of gold and platinum, have risen to 201 this year compared with a total of 199 for 2006, Solidarity said. The largest labor body, the National Union of Mineworkers, is holding a national one-day strike today to protest against what it has called a ``general lack of safety.''

Platinum has soared about 29 percent this year, compared with 24 percent for gold, on expectations demand for the metal's use in vehicle emissions filters and jewelry will grow faster than supplies.