Archive for November, 2012

CHINA TO INVEST IN PERUVIAN MINING TO THE TUNE OF $7.4BILLION DOLLARS

Tuesday, November 27th, 2012

CHINESE MINING GIANTS TO INVEST HEAVILY IN PERUVIAN MINING




Mineral Makeup up to 75% OFF!! Liquidation Sale … While Supplies Last!!

Lima daily Gestion reports Chinese mining companies Minmetals, Chinalco, Shougang and Zijing Mining Group are planning to invest $7.4 billion in Peru over the next five years, making up a substantial part of overall mining investment projects expected through 2017.

Shougang already works an iron mine in Marcona and recently announced an investment of $1.2 billion over the next five years to expand operations.

Zijing Mining Group, which is advancing the Rio Blanco copper project in Piura, will spend $1.5 billion for the same period, while Minmetals will invest around $2.5 billion in the gold and copper project El Galeno, located in the Cajamarca region.
Eforchina.com

Aluminum Corporation of China (Chinalco) has also announced an investment of $2.2 billion in the Toromocho copper project in the region of Junin.

China’s positive stance is in contrast to other foreign investors – Peru’s mining, oil and energy society (SNMPE) said in early September that, as a result of almost a year of non-stop anti-mining protests in different regions of the country, mining investment in the South American nation is expected to fall 33% next year.

The delays to Newmont Mining’s (NYSE:NEM) controversial $4.8 billion copper-gold Conga project in the Cajamarca region is only one of the factors investors are taking into account when rethinking their portfolios. Mostly they worry over the large number of mining projects dealing with social conflicts, such as Swiss based-Xstrata’s Tintaya copper mine, near Cuzco, in Southeastern Peru.

Behind Chile, Peru is the world’s second biggest producer of copper and silver and a major producer of gold, zinc, lead and other mineral

Eforchina.com

Sourced & published by Henry Sapiecha

MANUFACTURING & ENERGY SECTORS DOWN IN CANADA

Tuesday, November 6th, 2012

 

EMPTY POCKETS IN CANADA WITH ONSET OF WEAK  MARKET FOR OIL & GOLD

Canada’s economy shrank 0.1% in August, the first drop in six months, driven mainly by depressed manufacturing and energy sectors, Statistics Canada said Wednesday.

Hardest hit were mining and oil extraction operators, with the sector shrinking 0.7% Excluding oil and gas extraction, mining fell 2.8%. Metal ore mining declined 4.7% as a result of decreased output at copper, nickel, lead and zinc mines as well as at gold and silver ore mines.

Statistics Canada said scheduled maintenance affected metal ore output in August, while non-metallic mineral production fell 2.6% as a result of decreases in output at potash mines.

Oil and gas extraction declined 0.4%, as a drop in crude petroleum production outweighed an increase in natural gas extraction. Maintenance activities at some oilfields affected crude petroleum output in August, the statistics agency said.

Overall, StatsCan noted shrinking output in 10 out of 18 industrial sectors.

Sourced & published by Henry Sapiecha

EMERALD GEMSTONES ARE RISING STARS IN THE PRECIOUS GEMS TRADE

Monday, November 5th, 2012

EMERALDS INSTEAD OF DIAMONDS CAN BE THE CHOICE FOR PRECIOUS GEMS

Brian Gilbertson hopes to do for emeralds what Marilyn did for diamonds.

Ian Harebottle is searching for a global celebrity to do for emeralds what Marilyn Monroe and Audrey Hepburn did for diamonds.

The chief executive of Gemfields, the world’s biggest producer of the green stones, said he wanted ”to bring in an A-lister to be the face of emeralds”.

The plan is to mirror what the actresses did in past decades to help then monopoly producer De Beers sell diamonds as symbols of lasting love. Diamonds still dominate today’s $US21 billion ($A20 billion) precious stone industry.

Brian Gilbertson.Brian Gilbertson. Photo: Rob Homer

Rarer than diamonds yet cheaper, emeralds are gaining among consumers. At current growth rates they may take more than 20 per cent of their competitor’s market share within two decades, according to trade group the International Diamond Manufacturers Association. Gemfields’ share price has gained 78 per cent this year.

”Sometimes rarity is not an asset,” Harebottle said. ”You need the volumes of supply, which is what we’re doing.”

Mr Harebottle’s strategy, from buying African ruby and emerald mines to leveraging iconic names, is supported by Brian Gilbertson, former CEO of the world’s largest miner, BHP Billiton. Many will remember Gilbertson as the South African-born boss of BHP who clashed with the board and walked out with a $38 million payout back in 2003.

He was one of the key architects of the $57 billion merger between Melbourne-based BHP and Anglo-African miner Billiton back in 2001.

On leaving BHP Billiton, Gilbertson told BusinessDay: ”I’m pleased to have closed the book on all this and look forward to doing more creative things.”

Gilbertson now heads an investment fund that licensed the Faberge brand name to London-based Gemfields and bought a controlling stake in 2007. Emeralds and Faberge seem to be those ”more creative things”.

High-quality emerald prices increased more than tenfold in the past three years, outpacing a 21 per cent gain in diamonds. Still the red, green and blue stones comprise just 10 per cent of global gem sales and lack standardised pricing.

A 0.9 carat round diamond that is internally flawless and of rare white colour would cost about $US7000, says online retailer Blue Nile. A round emerald with ”excellent clarity” of the same size would cost about $US3500, says Africa Gems, an online retailer of the stones.

Gemfields’ market value increased to about £140 million pounds ($217 million) this year as prices increased for its Zambian output. That’s where it owns 75 per cent of the Kagem emerald mine, the world’s largest. It also has 75 per cent of the Montepuez ruby field in Mozambique. The biggest investor is the Rox unit of Pallinghurst Resources, a Guernsey-based fund that invests in natural resources. Its chairman is Gilbertson. Rox owns 63 per cent of Gemfields.

The company lacks the heft of the 20th-century De Beers model, in which a single company mined, marketed and largely controlled wholesale prices. Coloured stones are a fragmented industry that’s largely supplied by individual miners – sometimes parents and children – across about 10 countries.

At the same time it has benefited from singer and clothing purveyor Jessica Simpson, actress Halle Berry and the Duchess of Cambridge receiving engagement rings containing coloured stones.

Global imports of rough emeralds, rubies and sapphires totalled about $US2.2 billion in 2011, according to the United Nations Comtrade data. Rough diamond sales totalled about $US18.9 billion, according to BMO Capital Markets research.

”During the past three years, these other gemstone categories have taken away yet another half per cent from our market share, of our display space, of our sales in the jewellery retail shops,” Moti Ganz, president of the diamond manufacturers group, said in a speech at the World Diamond Congress last month.

De Beers dropped so-called generic marketing of the stones when its monopoly was ended after losing a 10-year legal battle with the United States over price-fixing in 2004.

Polished diamond prices have declined for five straight quarters as Asian purchases slowed and the euro region debt crisis eroded demand, according to PolishedPrices.com data.

Rough, or uncut, prices have fallen for the past two quarters and are heading for the first yearly decline since 2008 after rising by more than 20 per cent in each of the past three years.

The coloured gem market was about equal in size with the diamond industry in the 1940s.

De Beers, the world’s biggest producer, created the industry and developed the ”Diamonds are Forever” tagline that was voted as the best slogan of the 20th century by Advertising Age. Monroe’s recording of Diamonds Are a Girl’s Best Friend and Hepburn’s Breakfast at Tiffany’s film helped cement an allure in consumers’ minds, spurring a boom in demand and prices that were underpinned by a cartel.

While the growing popularity of coloured gems is reflected in the shop windows on London’s Bond Street, diamonds are still the first choice of consumers who are better educated about the stones.

”Coloured stones are mainly bought by more experienced customers who already have diamond pieces,” said Richard Campbell, whose family runs the jeweller Lucie Campbell on New Bond Street. ”It’s incumbent on the buyer to have confidence in the jeweller or their own knowledge.”

Lucie Campbell’s display is dotted with emerald, ruby and sapphire jewellery, including the shop’s most expensive piece, a pair of 22.45 carat and 21.66 carat emerald earrings set in platinum, surrounded by diamonds. The display carries no prices.

WASHINGTON POST


Sourced & published by Henry Sapiecha

GOLD PRICES DROP TO A LOW AS USA ECONOMY IMPROVES

Saturday, November 3rd, 2012

GOLD PRICES FALL AS THE US ECONOMY & JOBS GET BETTER

 

The price of December gold plummeted by more than $20 an ounce within minutes, crashing through the psychologically important $1,700 level on Friday after data showed a much better than expected increase in the number of US jobs created in October.
Gold Company

The precious metal continued to weaken throughout the session and after touching a low of $1,675, gold futures settled at $1,678, down $37 or 2.1% on the day.

Gold has now lost 6.5% or more than $110 of its value over the past month as continuing good economic news out of the US boosts the dollar and diminishes gold’s allure as an inflation hedge and storer of wealth.

The jobs report may mean that the Federal Reserve will end its QE program to keep interest rates low and flood markets with cheap money sooner rather than later.

The employment data is also the final chance voters have to assess Barack Obama’s record on the economy before next week’s US presidential election.

The outcome of the vote could have a big impact on gold – most analysts believe a win by Republican challenger Mitt Romney could spell disaster for the fortunes of the yellow metal
Ka Gold Jewelry

Sourced & published by Henry Sapiecha

Categories
Search