About a fifth of global platinum production capacity was idled in South Africa today as the nation holds a day of mourning for 44 miners and policemen killed in the deadliest police violence since apartheid ended. Impala Platinum Holdings Ltd. (IMP), the second-largest producer, has suspended work for a day at the Rustenburg operation to enable workers to attend memorial services, it said in a statement. Rustenburg and Lonmin Plc (LMI)’s Marikana mine, where police killed 34 protesters on Aug. 16, both tap the world’s richest platinum reserves, northwest of Johannesburg. The police shootings occurred after 10 people, including two police officers, died in fighting among workers and union members during an illegal strike by drillers that started on Aug. 10. President Jacob Zuma declared a week of mourning and agreed to set up a judicial commission of inquiry after police fired on protesting workers armed with machetes and pistols. “It is not acceptable for people to die where talks can be held,� Zuma told more than 1,000 striking miners yesterday, about 250 meters (820 feet) from the outcrop where the killings took place. The violence highlighted investor concern about law and order in an economy that relies on mining for almost two-thirds of its exports. Producers of platinum in South Africa, which has the world’s largest reserves, have cut spending and idled mines following above-inflation cost increases and lower prices for the metal, used in jewelry and anti-pollution devices. Main Service The main memorial service will take place at the Nkaneng shanty town and starts at 11 a.m., the ministerial committee appointed by Zuma to help families of those who were killed said by e-mail yesterday. More services will be held throughout the country. Zuma will name the members of the commission of inquiry by the end of the week, he said in a speech broadcast on Johannesburg-based SAFM radio yesterday. The rock-drill operators are demanding that Lonmin increase their pay to 12,500 rand a month ($1,504). The protests turned violent because of rivalry between the emerging Association of Mineworkers and Construction Union and the dominant National Union of Mineworkers, according to Lonmin. Worker discontent has spread to a nearby mine owned by Royal Bafokeng Platinum Ltd. (RBP), with operations interrupted at the company’s North shaft yesterday after about 500 workers started an illegal strike, it said in a statement. Police said employees were demanding higher pay. Worker Demands Royal Bafokeng Investor Relations Manager Lindiwe Montshiwagae didn’t answer a call to her mobile phone. The situation at Marikana is calm today, Lonmin spokeswoman Susan Vey said by phone. Anglo American Plc (AAL)’s platinum unit, the world’s largest producer of the metal, said workers in South Africa made demands directly to the company on Aug. 17. Lonmin has the capacity to produce about 750,000 ounces a year, mostly at its Marikana mine. Impala’s Rustenburg mine produced the same number in its last financial year. Impala in February estimated global annual supplies at about 7.7 million ounces. Platinum has gained 5.7 percent to $1,557.95 an ounce so far this week, heading for its biggest weekly advance since the five days through Jan. 13. To contact the reporters on this story: Carli Cooke in Johannesburg at clourens@bloomberg.net; Sikonathi Mantshantsha in Johannesburg at sikonathim@bloomberg.net To contact the editors responsible for this story: Kenneth Kohn at kkohn@bloomberg.net; Amanda Jordan at ajordan11@bloomberg.net

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