Platinum Rises To Three-Month High As Supply Concerns Intensify

Platinum jumped to a three-month high of $1,701 an ounce on Tuesday amid supply concerns after Anglo American Platinum Ltd. said it would close four of its shafts in South Africa's platinum belt and sell its Union mine in light of the company's cold outlook.

The gray-white metal was up 2.49 percent at $1,697.50 an ounce as of 08:08 GMT today, after Anglo Platinum said Monday it expects to swing to a loss for 2012 after a costly row of strikes that slashed production and lowered sales last year. Responding to rising economic challenges against a number of its mines, the world's top platinum producer said drastic changes to its business would wake 14 thousand job losses and a decline in annual production of 400 thousand troy ounces.

Anglo Platinum, majority-owned by U.K.-listed mining giant Anglo American Plc, is one of many mining companies still recovering from strikes in the past six months, which halted some of the country's largest gold, platinum and iron-ore mines. A two-month strike in the second half of 2012 stripped Anglo Platinum out of 306 thousand troy ounces of refined platinum produced at its own operations and joint ventures!

Though the outlook for 2013 remained grim, Platinum has outpaced its yellow counterpart, which struggled to rally from a recent 4-1/2 month low, as data signaled exports of the world`s top platinum consumer grew at the fastest pace in seven months.

Besides to supply holes shaped by Labour strike in South Africa's producing belt, Platinum was backed by signs of ongoing improvement in U.S. auto sales, while China's trade data has given a brighter tone to platinum with the start of the year. Platinum is a scarce-heavy metal, used as a catalyst in chemical reactions, and in laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, dentistry equipment, petroleum industry and jewelry.