By Clara Denina and Ed Stoddard
LIMA/JOHANNESBURG, Nov 10 (Reuters) - An industry body topromote investment demand for platinum should be set for launchlate this year or early 2015 as South African producers try toboost sales in the face of falling prices, industry and bankingsources said.
The new body, called the World Platinum Investment Council,will most likely be based in London or Johannesburg, the sourcessaid.
"This is a collaborative industry initiative. The aim is topromote investment into platinum," said a source at a producer,who declined to be named.
The source said the world's top platinum producers AngloAmerican Platinum and Impala Platinum wereheavily involved but several of the smaller companies in thesector were also taking part in the discussions and would likelysign up and help finance it.
"There have been a number of meetings on this issue and theyare still ongoing. We are looking for a launch date and arehoping to do it before the end of the year," said anotherproducer source.
Banking sources told Reuters that industry executives hadmet with London banks in July to discuss the council.
In a speech in August, Amplats chief executive ChrisGriffith said the industry would be launching a body to promoteinvestment demand. He said $13 billion of platinum is held as aninvestment, a significant amount despite limited promotion bythe industry but still far lower than investment holdings ofgold.
In a presentation to analysts last month, Amplats said itwas focusing on promoting platinum demand via a joint producerfunded entity to be launched in the last quarter of this year. A company spokesman said the company could not provide furtherdetails until the initiative was finalised.
The spot price for platinum, used inemissions-capping catalytic converters in automobiles, last weekhit a five-year low of $1,181.50 an ounce.
It is also the latest example of cooperation in an industrythat has long been fiercely competitive and secretive.
In part this is a consequence of an historic five-monthstrike this year that hit Amplats, Implats and Lonmin , bringing the trio together in the face of a common andunprecedented challenge.
The investment council will be modelled on the lines of thePlatinum Guild International, which markets the metal to thejewellery trade, and the World Gold Council, which promotesdemand for gold.
Founded in 1975 by South African producers and refiners, theplatinum guild is a rare example of cooperation in the industryand is widely regarded as a successful tool that has promotedplatinum jewellery. (Additional reporting by Silvia Antonioli in LONDON; Editing byMichael Urquhart)
