Platinum reached a two-month high at $1,641 an ounce on St. Patrick’s Day, and palladium rose on fears over power output in South Africa. South Africa is the number one provider of platinum, responsible for four-fifths of the world’s platinum output. South Africa is also the second biggest palladium producer.

South African state-run utility Eskom said on Tuesday power supply is seen as a serious concern from 2011 onwards until new power stations come on-stream.

The metals, mainly used in auto catalysts, have already risen strongly this year on expectations for rising car sales.

Elsewhere, Platinum Australia says underground mining operations were restarted at its Smokey Hills Mine in South Africa on Monday (March 8 ) following an industrial dispute.

The contractor, Redpath Mining, completed the appeal process for about 70% of employees, who were re-employed. The employees had been dismissed for participating in unprotected industrial action at the mine.

The appeal process for the balance of the workforce should be completed by the end of the week.

Platinum Australia said the crushing plant was now operating at full capacity and its milling and flotation plant has been operational since March 10th.

Axel Rudolph, a technical strategist at Commerzbank in London, said in a report yesterday. “Platinum continues to grind higher towards the $1,648/$1,662 resistance zone. Our short- and medium-term forecast has reverted to bullish now that last week’s $1,614.50 peak has been surpassed,”

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Armando Cortez