Gold bears of the world unite |
- Gold bears of the world unite
- Calling all single, Canadian mining CEOs
- Government does 'U-turn' on deal with Drummond, blocks coal-loading
- Colombia wants illegal mining to be international crime
- SURVEY: Nearly half of Canada’s resource companies see better 2014
- China and Ghana to work harder on tackling illegal mining
| Posted: 09 Jan 2014 05:04 PM PST After kicking the year off with a mini-rally, gold was holding steady at around $1,225 an ounce in New York on Thursday. Gold showed little reaction on Thursday to expectations of a rate hike in the US much sooner than previously expected as good news about the economy pours in and Fed minutes show consensus on the need to slow down the dollar printing presses. Predictions for the gold price in 2014 by investment and bullion banks don't vary much in that the vast majority predict a decline this year. In fact as forecasts dribble in, it seems analysts are getting more bearish by the week. Latest to call for a double digit decline in 2014 after last years hammering is Bank of America Merrill Lynch. The investment bank now sees gold averaging $1,150 this year, compared to 2013's average of $1,410, a more than 18% decline. MarketWatch quotes BofA Merrill Lynch strategist Michael Widmer as saying gold could even trade below this levels should last year's record setting investor outflows for the sector continue. "If investors stopped selling gold, prices could stabilize around $1,200/oz. Yet, this is not our base case and a more likely scenario is for investors to continue reducing their exposure. Our model suggest that this could take prices down to $1,000/oz." Holdings of the world's largest gold ETF – SPDR Gold Shares (NYSEARCA:GLD) – has dropped 3.6 tonnes this year as of Thursday after a 45 tonne decline in December. At 793.1 tonnes GLD holdings are at the lowest level since January 2009. Overall, the more than a hundred gold-ETFs traded around the world saw net selling last year of 869 tonnes with the bulk of the selling – 586 tonnes – occurring in the first half of 2013. BofA Merrill Lynch also cut its forecast for silver by 21% to $18.38 an ounce for the year. Silver futures were last changing hands for $19.50 an ounce after plummeting 36% last year. The precious metal averaged a shade under $24 last year. BofA Merrill Lynch joins London-based Barclays in issuing a bearish forecast. The Economic Times quotes Barclays analyst Suki Cooper as saying "from both macroeconomic and underlying fundamental perspectives, gold is likely to struggle to find supportive catalysts in 2014." Barclays sees gold averaging $1,205 – 14.5% below last year's average – with a high of $1,375 and a low of $1,050. Barclays sees silver at $19 an ounce this year. Swiss financial group MKS Group is more upbeat about the prospects for gold predicting highs of $1,350 in the first half of the year, before a weakening to a low of $1,120 towards the end of the year as US rates begin to tick up and global growth picks up. MKS's average for the year is pegged at $1,262, down 10% from last year. MKS points out that in September European central banks are set to rework their 2009 gold sales agreement and any significant change could have an impact on the gold price: The official sector has been a net buyer for several years, the agreement may possibly not to be renewed or the signatories may decide to reduce the selling quotas. The price of of gold ended 2013 down 28% at a shade over $1,200 an ounce, bringing a 12-year bull run that took it from around $270 an ounce at the end of 2000 to a record high above $1,900 in September 2011 to a decisive end. Picture of gold mannequins from Dali-Theatre Museum in Barcelona by Chirag D Shah.  |
| Calling all single, Canadian mining CEOs Posted: 09 Jan 2014 03:03 PM PST The Bachelor Canada is looking for its newest bachelor and someone from the mining industry may be just who they need. A casting producer recently contacted MINING.com in search of suggestions on "some key industry players" who could be a great fit for the show. "Mining is such an important and huge Canadian market" that they wouldn't want to "overlook the possibilities," the e-mail read. And it's true. More than 50% of the world's public mining companies are in Canada. In it's official casting call, the Bachelor Canada describes the ideal man that they're looking for. "A vibrant, single man, aged 30-36. Handsome, outgoing and successful" (cue mining industry). "Open to adventure and not easily intimidated. Someone who enjoys travel and is interested to explore some of the world's most exclusive destinations." "Most importantly, he must be open to love and accept the challenge of finding the WOMAN OF HIS DREAMS." Taping start in spring 2014 so the clock is ticking. |
| Government does 'U-turn' on deal with Drummond, blocks coal-loading Posted: 09 Jan 2014 10:48 AM PST Last week a regional environmental body in Colombia ordered Drummond, the country's second largest coal producer, to stop loading coal because the company had not completed upgrades to its loading system by the January 1 deadline. New rules require all coal-loading work to be done through a direct-to-vessel system but US-based Drummond was unable to complete the work on time. In December the company struck a deal with the government whereby it would continue loading with barges and cranes until March, but would pay a daily fee to do so. Initially it was unclear whether the regional body's order could override the deal with the Colombian government, but on Wednesday Reuters reported that the government had made a "U-turn" on the deal. "The national government has made the determination to suspend loading of coal until the direct loading system is put in place," Environment Minister Luz Helena Sarmiento said, as reported by Reuters. "This decision announced today is to be adhered to immediately."
Sarmineto, who inspected Drummond's port facilities on Wednesday, acknowledged that the move will result in the loss of royalty payments but said that "if they [Drummond] don't do things properly, we'd prefer not to have this money, and they have to learn that Colombia must be respected," the BBC reported. She warned that if the company "breaks the law again," the government will be "forced to act as police, and that will aggravate its situation." Colombia first announced the law in 2007. A conveyor belt system is expected to help cut pollution from coal-loading activities. |
| Colombia wants illegal mining to be international crime Posted: 09 Jan 2014 09:02 AM PST  Gold is illegal miners' main target. Colombia's Minister of Defense for Policy and International Affairs, Jorge Enrique Bedoya said Thursday the country has made significant progress towards including illegal mining in the list of international crimes, after members of the Andean Community of Nations (CAN) agreed today to apply a set of measures to combat the illicit activity. Speaking on radio La W, the authority said Ecuador, Peru and Bolivia have committed to destroying machinery and even properties related to unlawful mining if they can't be seized. Two weeks ago, Colombia revealed it was planning a raid to seize and close a major illegal tungsten mine run by the Revolutionary Armed Forces of Colombia (FARC), which is said to have supplied top multinational companies, including BMW, Volkswagen, Samsung and Apple. Illegal mining has become the "new cocaine" of Latin America in terms of illicit trading, as the Andean countries, as well as Venezuela and Brazil are said to be obtaining higher profits from the unlicensed activity than from drug trafficking. The ecological damage is even greater. The shady business in the Amazonic jungle of Peru is already generating 15% more profits than the country's total estimated drug trafficking. The figure is shocking, as Peru is said to already be the world's largest exporter of cocaine. |
| SURVEY: Nearly half of Canada’s resource companies see better 2014 Posted: 09 Jan 2014 07:42 AM PST
Despite a drastic decline in business and hiring activity last year, optimism for 2014 remains high among Canadian business leaders – though the resource sector is split, reveals Hays Canada's 2014 Salary Guide. The international recruitment agency collected data from more than 150 employers in November 2013, finding there was a significant difference between expected and real business activity slowdown last year. Only 11% of the employers surveyed said they expected a dip in activity, while 42% of them actually experienced one. This translated into fewer people being hired for permanent positions: 10% expected to cut their permanent headcount last year, when in fact 45% did. The report, however, points toward renewed optimism for 2014. More than half (64%) of experts interviewed by Hays expect business activity to increase this year, the highest it's been in three years. While considering only the resource and mining sector, the numbers are equally positive, with 45% predicting more deals this year. "It's worth noting that corporate Canada remains optimistic even when data suggests that a more temperate outlook would be more prudent," said in a statement Rowan O'Grady, President of Hays Canada. "Companies would be better served by producing more accurate assessments of their growth prospects and adjusting their hiring plans accordingly." Against this backdrop the skills shortages challenge persists, highlights the firm. According to the survey two-thirds (66%) of local companies suffer from moderate to significant skills shortages. When asked about potential causes for skills shortages, one-third (33%) cited lack of training and professional development, while another third (35%) thought too few people are entering the labour market. Image by Anna-Mari West/Shutterstock.com |
| China and Ghana to work harder on tackling illegal mining Posted: 09 Jan 2014 04:15 AM PST China's foreign minister has agreed to help Ghana tackle illegal gold mining in the country, Africa's second bullion producer, and so avoid tension-generating issues, such as the massive deportation of almost two hundred of his compatriots, arrested and expulsed from Ghana last year. After meeting his Ghanaian counterpart, Hannah Tetteh, Wang Yi said Beijing took the issue "very seriously," and urged both countries to work more closely together to crack down further on the problem, AFP reported. Before gold began losing investors' faith, Ghana was facing an influx of illegal small-scale miners, mainly Chinese, whose operations became a source of contention and resentment for locals, with disputes often turning into armed clashes and leading political figures raising pointed concerns. The escalating tensions forced President John Dramani Mahama to launch a taskforce to crackdown on illegal mining last year, when it was estimated that 50,000 illegal Chinese gold prospectors were operating in the country. The Chinese "gold rush" in Ghana began in 2005 and, at its peak, several thousand small gold mines were run by Chinese, who formed partnerships with local owners. A number of them have given up in recent months. The issue for them is not just Ghana's crackdown on unlawful mineral extraction, but also the price drop — in 2013 gold fell the most in 32 years. China is one of the largest infrastructure investors in Ghana. Image: Aljazeera's documentary screen grab |
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