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RESOURCE COUNTERS HELP SEND STOCKS TO FIVE-WEEK HIGH (South Africa)

Posted by Gilmour Poincaree on December 10, 2008

December 10, 2008

Reuters and Bloomberg

PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Johannesburg – Stocks climbed to a five-week high yesterday buoyed by firmer mining shares.

The Top40 index rose 5.28 percent to 19 986.66 points on Wednesday, while the broader all share index climbed 4.67 percent to 21 930.94 points, levels last seen on November 5.

Gideon Muller, a trader at Thebe Securities said: “Commodity prices are picking up our market [such as] your mining houses and platinum shares.”

BHP Billiton rose 11.48 percent to R188.95 and rival Anglo American gained 7.71 percent to R230.50.

AngloGold Ashanti rose 11.08 percent to R271.

Anglo Platinum increased 8.92 percent to R455 and Impala Platinum advanced 2.5 percent to R121 after platinum prices firmed.

Pallinghurst Resources fell 2.25 percent to R4.35. The company and the Bakgatla Ba Kgafela tribe would invest $175 million (R1.8 billion) in Platmin to allow the company to fund the construction of its Pilanesberg platinum mine in the North West.

Sasol climbed 7.01 percent to close at R299.63.

Kumba Iron Ore slipped 3.7 percent to R157, the biggest decline since November 28. The iron ore producer plans to proceed with an R8.5 billion expansion as its competitors slash output.

Banking stocks, which are sensitive to interest rate moves started to march higher after a report showed retail sales slumped for a sixth month, raising speculation the central bank will cut rates today.

African Bank Investments Limited rose 6.11 percent to R28.12 and Standard Bank ticked up 1.09 percent to R83.49.

Garth Mackenzie, the head of derivatives trading at BoE Stockbrokers, said:

“The stimulus packages continue to boost growth expectations. “We are also seeing quite big gains in the local retailers ahead of the interest rate announcement.”

MTN surged 7.7 percent to R102.99. JD Group increased 8.7 percent to R33.95.

Tiger Brands rallied 3.5 percent, to R147.

Simeka Business Solutions added 7.7 percent to 42c, rising for the first time in six days. The information technology company said first-half earnings a share advanced as much as 40 percent.

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PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Posted in BANKING SYSTEMS, COMMERCE, COMMODITIES MARKET, COPPER, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, IRON ORE, METALS, MINING INDUSTRIES, PLATINUM, PRECIOUS METALS, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, SOUTH AFRICA, STOCK MARKETS, THE FLOW OF INVESTMENTS | Leave a Comment »

PAN AMERICAN SILVER CUTS 500 JOBS (Canada)

Posted by Gilmour Poincaree on November 14, 2008

November 13, 2008 at 9:21 AM EST

The Canadian Press

VANCOUVER — Pan American Silver Corp. is cutting 500 jobs, rolling back executive salaries by 10 per Silver and gold jewels and other itemscent and reducing exploration and capital spending to deal with weaker finances and a drop in prices of silver and zinc, its key metals.

The Vancouver company said Thursday the streamlining was required to cope with weaker metals prices, a 10 per cent drop in revenues and sharply lower profits in the latest quarter.

“These are challenging times for the global mining industry,” president and CEO Geoff Burns said in a release.

“We have responded by retooling our business plans to reduce costs and adjust to the new pricing environment. We have managed our business conservatively over the past couple of years and enter this difficult period in solid financial health, with no debt and with the skills and the experience to adapt and thrive without compromising our growth.

“There are many reasons to be optimistic about future silver and gold prices. Government bailouts and debts worldwide have reached epic proportions and will, in my opinion, eventually undermine the very value of the paper currencies and the economies those same governments were charged with protecting. This should benefit gold and silver prices and Pan American Silver.”

In its financial report, Pan American said its net earnings for the third quarter ended Sept. 30 fell to $6.4-million (U.S.) or eight cents a share, from $23.9-million, or 31 cents a share for the same 2007 period.

Sales fell 10 per cent to $79.5-million, said the company, which reports its finances in U.S. dollars.

Pan American has seven operating mines in Mexico, Peru and Bolivia. An eighth mine in Argentina is scheduled to start up this month.

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PUBLISHED BY ‘THE GLOBE AND MAIL’

Posted in ARGENTINA, BOLIVIA, CANADA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, GOLD, INTERNATIONAL, METALS, MEXICO, NORTH AMERICA, PERU, PRECIOUS METALS, SILVER, THE FLOW OF INVESTMENTS, ZINC | Leave a Comment »

ANGLOPLAT SET TO BUILD 20.000 HOUSES (South Africa)

Posted by Gilmour Poincaree on November 14, 2008

November 14, 2008

by Justin Brown

Johannesburg – Anglo Platinum (Angloplat) would build up to 20 000 houses for employees at its mines in the next five to 10 years, the company said yesterday.

The plan, estimated to cost R4 billion at current prices, is a response to the mining charter requirement that single-sex hostels be eradicated.

Papillon Motswenyane, Angloplat’s senior manager of housing, said the sum would be made up of R1.6 billion in state housing subsidies and Angloplat contributions, and R2.4 billion in employee contributions.

“Angloplat’s intention is to reduce its employees’ dependence on company accommodation and promote home ownership,” he said. “Angloplat wants to introduce employee assisted housing.”

Neville Nicolau, Angloplat’s chief executive, said the group wanted to provide its employees with a reasonable alternative to hostel accommodation. “A large number of employees do not have housing,” he added.

Nicolau said the housing plans would help reunite workers and their families and reduce squatter camps adjacent to Angloplat’s mines in North West and Limpopo.

The group would subsidise the cost of land and services provided to employees who took up the housing schemes.

Angloplat yesterday signed a memorandum of understanding with the department of housing. Kaba Kabagambe, the deputy director-general of housing, said the department viewed the memorandum as “a major milestone”.

A key constraint for the department had been the availability of suitable land, he said.

The first phase of the scheme would create 15 000 jobs, Kabagambe added.

Until now six to 10 workers have shared a hostel room. In the hostels the number of people sharing a room will decline to two and eventually to a single person per room within five years.

Angloplat has already built just over 1 000 houses, including 721 in Rustenburg and 86 in Thabazimbi, near its Amandelbult and Union mines.

Angloplat might need to build a further 10 000 houses as it transfers work done by contractors to its own employees.

Angloplat rose 0.36 percent to R414.50 yesterday. The platinum sector lost 2.92 percent

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PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Posted in CONSTRUCTION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, INDUSTRIES, INTERNATIONAL, MINING INDUSTRIES, PLATINUM, PRECIOUS METALS, SOUTH AFRICA, THE WORKERS | Leave a Comment »

CARPATHIAN DRILLING INTERSECTS 8 M OF 6.95 G/T AU ON THE RDM GOLD PROJECT, BRAZIL

Posted by Gilmour Poincaree on November 13, 2008

November 4, 2008

Carpathian Gold Inc. (CPN:TSX) (the “Corporation” or “Carpathian”) is pleased to announce initial drill In this undated handout file photo from Newmont Mining Corporation, gold nuggets and bars are shownresults from the 100% owned Riacho Dos Machados gold project (”RDM”) located in Minas Gerais State, Brazil. The RDM gold project is a 22,000 hectare land parcel comprised of 12 Exploration Licenses and one Mining Concession that covers a 20 kilometre long north-south shear zone. The Mining Concession hosts a past producing open-pit gold mine, which was previously operated by Companhia Vale do Rio Doce (”Vale”) between 1986 and 1997 from which oxide gold ore was mined to maximum depths of 60 m below the surface. Carpathian believes the RDM project can be quickly advanced by upgrading the previous work through drilling on the property in order to complete a NI-43-101 compliant resource estimate, which would be followed by a preliminary economic assessment and feasibility studies. Three diamond drill rigs have been active on the Mining Concession and approximately 10,300 m of drilling has been completed from 58 diamond drill holes. The drill program has been concentrated in the area of the previous open-pit operation along the known 1,350 m long gold zone and down to a vertical depth of approximately 200 m below the existing open-pit. In addition, the drill program also evaluated the possible northern and southern extension of this gold zone by an additional 500 m in each direction. Along with this drill program, 22 diamond drill holes from the drilling completed on the property by Vale have also been re-sampled and re-logged. The primary objective of this program was to obtain sufficient drill data to validate previous drill results, extend the gold zone along strike and define sufficient mineralization at an open-pit gold grade to justify deepening the current open-pit by approximately 200 m. Drill results from the current program have encountered the gold mineralization where anticipated, including in the southern strike extension. The assay results received to date support the previous grades and thickness as defined by Vale, but have also encountered areas of higher grades and thickness; such as drill hole FRM 19 which intersected 8 m of 6.95 g/t Au. While a number of sample assay results are still outstanding, some of the highlight assay intersections received to date are listed below. All of these results represent the portion of the mineralized zone that is considered to be accessible through the deepening of the open-pit. A complete list of the assay results can be found at the end of this press release. A map showing the location of the drill holes completed can be found on the Corporation’s website at http://www.carpathiangold.com.

“With the announcement last week of the completion of the RDM acquisition, the Corporation can begin to recognize the additive value of this new and complementary exploration/development platform”, said Dino Titaro, President and CEO. “The early drill results indicate that the RDM project is meeting our expectations and that the gold grades and thicknesses encountered to date support the vision of deepening the open-pit, and the potential of a future underground operation, and that the mineralization is in fact continuous along strike and now extends almost 2 km in length. Given that the project already lies within a Brownfield permitted Mining Concession with infrastructure in place, we believe an early-production profile can potentially be realized.” The gold mineralization at RDM is shear zone hosted, within a package of Precambrian aged metamorphic rocks. This shear zone strikes 20 degrees and dips 40 to 50 degrees west. The gold mineralization is known to be continuous over a strike length of 1,350 m and open at depth to greater than 550 m at the RDM mine-site. The current drilling program has demonstrated that this mineralization is now continuous for a strike length of at least 2,000 m. Within the shear zone, which can reach thicknesses of up to 40 m, the gold mineralization often occurs as ’stacked’ mineral zones with cumulative thicknesses in the order of 15 to 20 m. Examples include drill hole intersections such as FRM 20 from Area V where the overall thickness of the shear zone is 33.9 m which includes 3 distinct gold mineralized zones totaling 15.6 m at a weighted average of 3.45 g/t Au. In drill hole F 2 (Area III) the overall thickness of the shear zone is 35.0 m which also includes 3 distinct Au-mineralized zones totaling 23.0 m thick at weighted average of 1.82 g/t Au. These stacked mineralized intersections all occur within the area being tested for purposes of deepening the existing open-pit. On the Mining Concession, Vale had previously defined a resource in the sulphide zone below the open-pit, of 3.77 Mt at 4.61 g/t Au for approximately 560,000 ounces of gold. This resource is non 43-101 compliant and is based on diamond drill programs and underground development and sampling along 1,350 m of the shear zone down to a vertical depth of approximately 550 m (see NI 43-101 Technical Report on the property dated February 29, 2008 and filed on http://www.sedar.com). Carpathian’s current work program on the property has been designed to: 1) validate the historical resource; 2) evaluate the possibility of expanding the mineralized zone along strike and thus the overall resource potential; 3) define sufficient gold mineralization at a high enough gold grade to justify deepening the current open-pit by approximately 200 m as well as expanding it on strike; 4) define the size and tenor of the gold mineralization below the open-pit expansion for a potential underground operation down to a vertical depth of at least 500 m; 5) obtain samples for further metallurgical test work; 6) complete a NI 43-101 compliant resource estimate based on the historical drill results and Carpathians’ drill results; 7) simultaneously work on environmental and social programs, and; obtain sufficient information to complete a Preliminary Economic Assessment on the project. The drill program on the property has been temporarily suspended for resource model development and further re-sampling and logging of the Vale drill core.Sample Protocol

All samples collected from Brazil are prepared and analyzed at the independent ISO Certified ALS Chemex laboratory, located near Belo Horizonte, Brazil using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Coarse blanks, pulp blanks, pulp duplicates, and known gold standards are inserted on a routine basis. They consist of 12% per cent of submitted samples. In addition, on a periodic basis 3% of the crusher rejects are re-submitted and a minimum of 3% of the pulps will be analyzed at the ISO Certified OMAC Laboratory in Ireland for check assays. All samples are from split NQ drill core sampled on a metre by metre basis through the mineralized zone and into surrounding altered rock. Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

The Corporation is a mineral exploration company focused on gold exploration primarily on its property in Romania as well as gold exploration and development on its development-stage property in Brazil. The Corporation has 207,278,454 shares outstanding.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements: This press release includes certain statements that may be deemed “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, and other similar words, or statements that certain events or conditions “may” or “will” occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information: Dino Titaro, President & CEO, Or Mike O’Brien,
Manager Investor Relations, (416) 368-7744 (CAN), Fax.: (416) 260-2243 (CAN),
info@carpathiangold.com, www.carpathiangold.com; Eric Leboeuf, Investor Relations, Montreal, (514) 341-0408, 1-866-460-0408, Fax.: (514) 341-1527,
ericleboeuf@paradox-pr.ca; Toni Vallen, Seton Services, UK, +44 207 229 3177,
toni@setonservices.com; Renmark Financial Communications Inc., Jeffery Szita:
jszita@renmarkfinancial.com; Ryan Van de Polder: rvandepolder@renmarkfinancial.com; (416) 644-2020, Fax: (416) 644-2021,
www.renmarkfinancial.com

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PUBLISHED BY ‘NEWSWIRE – Canada’

Posted in AS INDÚSTRIAS DE MINERAÇÃO, BRASIL, COMMODITIES MARKET, ECONOMIA - BRASIL, EXPANSÃO ECONÔMICA, EXPANSÃO INDUSTRIAL, FLUXO DE CAPITAIS, GOLD, INDÚSTRIAS, PRECIOUS METALS | Leave a Comment »

GOLD JUMPS 4% ON CHINA’S BAILOUT PACKAGE

Posted by Gilmour Poincaree on November 11, 2008

11 Nov 2008, 0155 hrs IST, REUTERS

LONDON: Gold rose more than 4% on Monday as dollar weakness and sharp gains across commodities Photo - WN - Periasamysharpened appetite for the precious metal, but retreated from highs as the dollar recovered some lost ground against the euro. A near $600-bn economic stimulus package announced by China on Sunday helped allay risk aversion and fuelled gains in equities as well as oil and base metals, carrying gold higher.

In London, spot gold touched an intraday peak of $767.80 an ounce, before easing back to $751.10/753.10 by 21:30 pm IST, against $735.95 in New York on Friday. US December gold futures rose more than 2% and were trading at $751.30, up $17.10.

In Mumbai, a major gold hub in India, the price of yellow metal hardened further on the back of stockists’ buying, supported by a rally in international markets. Standard and pure gold rose by Rs 70 and Rs 80 to Rs 11,785 and Rs 11,850 per 10 gm, respectively.

“The weakness in the US dollar… and the rise in crude oil and industrial metals reflect the announcement made by Chinese government on Sunday for a stimulus package of roughly $568 bn,” said Dresdner Kleinwort consultant Peter Fertig. “

This should spur investment in housing and infrastructure in the next two years, which will (lead to) stronger demand for energy and base metals. This is also a supportive factor for gold.”

China launched its stimulus plan on Sunday, pledging nearly $600 bn in extra spending by the end of 2010. Base metals jumped in response to the plan, with copper surging nearly 10%, nickel 13% and zinc around 7% following the news. All the metals have lost substantial ground in recent months.

At a G-20 meeting in Brazil, finance ministers and central bankers representing 90% of the world’s economy said they will take “all necessary measures” to normalise the financial markets and counter the backlash to the credit crisis.

The dollar weakened against the euro as risk appetite improved. A recovery in the stock markets prompted investors to move into higher-yielding currencies such as the euro and the yen.

A softer dollar tends to benefit gold, which is often bought as a hedge against weakness in the US currency. The currency’s recovery from lows against the euro later led gold to pare gains. Among other precious metals, silver tracked gold higher to a peak of $10.51 an ounce, up 5%, before settling back to $10.29/10.39 an ounce from $9.99.

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PUBLISHED BY ‘THE ECONOMIC TIMES’ (India)

Posted in ASIA, CENTRAL BANKS, CHINA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, GOLD, INTERNATIONAL, PRECIOUS METALS | Leave a Comment »

GOLD UNEXPECTEDLY NOT SHINING AS AN INVESTMENT – Hedge funds dumping mineral to raise cash is keeping the price down

Posted by Gilmour Poincaree on November 4, 2008

Updated 5:26 p.m. ET Nov. 3, 2008

NEW YORK – For years, investors known as gold bugs snapped up the metal and socked it away, betting that a colossal economic crisis would one day slam financial markets and send gold prices through the roof.

For many investors, that grim scenario is in full swing, except for one thing: After briefly hitting $1,000 an ounce for the first time in March, gold has fallen into a rut and shows no sign of budging anytime soon.

Gold’s failure to flourish despite broad financial carnage has disappointed many of the metal’s champions. Others say it’s simply in a lull and is ripe for another big surge. But most gold buyers agree that the metal’s lackluster performance lately has been surprising.

“It’s been a puzzle for most of us,” said Geoff Farnham of Venice, Calif. who inherited some gold holdings and recently began buying gold coins as “insurance.”

“In hard times, gold is a good thing to have,” the retired software developer said. “Knowing that there aren’t a lot of gold coins out there to buy, seeing the price continue to drop has been curious.”

It’s also been punishing for investment portfolios. Since soaring to an all-time high of $1,033.39 an ounce on March 17, gold has plummeted 30 percent. Gold for December delivery on Monday rose $8.60 to settle at $726.80 — roughly the same level where it traded a year ago.

So what happened? As the financial crisis pummels financial markets around the globe, hedge funds and other large investors who drove gold to dizzying heights earlier this year are now racing to unwind those positions to raise cash and cover huge losses. The massive deleveraging has pounded other commodities from crude oil to corn to copper.

“Gold is being pulled down by indiscriminate selling of virtually every asset,” said Jeffrey Nichols, managing director at New York-based American Precious Metals Advisors. “You could call it collateral damage.”

Instead of gold, investors are pouring money into the newest safe-haven asset: cash. That has pushed the dollar to multiyear highs against the euro and the pound, hurting demand for gold among investors who buy the metal as a safe-haven against inflation.

With economists now warning that a world economic slowdown could bring about deflation, or a sustained period of falling prices, gold analysts say it’s unclear how the metal will respond.

“Gold hasn’t been tested in a true deflationary crisis so we don’t what will happen to prices,” said Jon Nadler, precious metals analyst with Kitco Bullion Dealers Montreal.

Another question is whether demand for gold jewelry and luxury items will pick back up, which could boost prices. The holiday season is traditionally the busiest season for gold buying in the U.S., Asia and elsewhere, but analysts expect the global economic slowdown to hurt sales.

“It doesn’t look like it will be a good Christmas for jewelers,” Nadler said. “When you don’t have a job and bonuses and Christmas parties are being canceled, the mindset is toward frugality and gold takes a hit from that.”

Still, not everyone is selling gold.

Mark Albarian, CEO of Goldline International, Inc., a Santa Monica, Calif.-based gold dealer, said sales at his firm tripled in October compared to August — a sign that individual investors aren’t joining hedge funds in the rush to sell gold.

“Our clients overall seem to be very happy with their gold,” Albarian said, noting that gold is still outperforming most assets. “Gold may be back down to where it was last year. But our houses have dropped 10 to 30 percent during that time and stocks are way down. So gold has held up rather well.”

Looking ahead, some gold watchers are betting for another big climb. They argue the dollar’s recent rally can’t last as long as the government has to pay for a string of mammoth financial bailouts by either printing money or raising taxes — both inflationary weights that should weigh on the greenback and be bullish for gold.

“Fundamentals will re-establish themselves as the driver of the gold market, and we believe we’ll see $1,250 gold during this period,” Donald Doyle, chairman and CEO of New Orleans-based precious metals dealer Blanchard and Co., said in statement Monday.

In the meantime, Farnham said he’s hanging on to his gold. He said he’s hopeful the economy will improve and he won’t need to cash in his insurance, but with all the uncertainty, he’s not ruling out that he might have to.

“I think a lot of it will depend on world events,” he said, citing conflicts in the Middle East and threats to world resources like oil. “There’s potential for a lot of crisis out there, and crisis drives up gold.”

At least, that’s the theory.

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PUBLISHED BY ‘MSNBC’

Posted in COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INTERNATIONAL, PRECIOUS METALS, THE FLOW OF INVESTMENTS | Leave a Comment »

BOLIVIAN MINES HALT AS METAL PRICES PLUMMET – Bolivian Zinc, Silver Mines Fall Silent As Global Crisis Sinks Metal Prices

Posted by Gilmour Poincaree on November 2, 2008

POTOSI, Bolivia, Oct. 30, 2008

(AP) Falling mineral prices have Bolivian miners digging in the hard Andean earth for a humbler means of survival: potatoes.

The global financial crisis is driving a decline in metal prices that has idled thousands of miners here in recent weeks _ just in time for the Southern Hemisphere’s spring planting season in nearby rural villages once all but abandoned during a recent mineral boom.

“They can no longer earn anything in the mines, but at least they can plant their crops so they have something to eat,” Roman Rodriguez, spokesman for the Potosi state Federation of Mining Cooperatives, told The Associated Press recently.

The price of zinc, Bolivia’s largest export after oil and gas, has dropped nearly a third in the last month, and is 70 percent off its peak in late 2006. Falling prices for silver, tin and lead have also hit the key mining industry hard in this poor Andean nation.

The Potosi federation reported this week that 80 percent of region’s mining cooperatives have halted operations until zinc and silver prices recover. In the state’s colonial capital, whose treeless, rust-colored hills tower 13,300 feet (4,000 meters) above sea level, a work force of 25,000 miners has been cut in half. Those still working have seen daily paychecks drop from more than $20 to about $7.

Another telling economic indicator is the disappearance of more than a dozen Hummers that mine owners once drove through the city’s narrow streets. Miners here say many of the vehicles were sold for cash at a swap meet.

President Evo Morales has announced $5 million in zinc subsidies to help keep mines open, and his government is considering similar funds for other minerals.

The money aims to appease the estimated 80,000 members of independent miners’ cooperatives, a volatile political bloc known for showing up at street protests with hardhats and dynamite.

“The government will do everything possible to prevent more cooperatives from halting operations,” mining director Freddy Beltran said Tuesday.

Copyright 2008 The Associated Press. All rights reserved.

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PUBLISHED BY ‘CBS NEWS’ (USA)

Posted in BOLIVIA, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, LEAD, METALS, METALS INDUSTRY, PRECIOUS METALS, SILVER, TIN, ZINC | Leave a Comment »

LOCAL STOCKS SUCKED INTO PIT OF DESPAIR (South Africa)

Posted by Gilmour Poincaree on October 24, 2008


October 24, 2008

by Palesa Motloung

Johannesburg – The JSE opened deeply in the red on Friday, as panic gripped Asian and European markets, which went into free fall despite a firmer close on Wall Street overnight.

The JSE opened 4.08 percent lower in a continuation of Thursday’s trend when it ended down 3.4 percent. The local bourse continued to be weighed by heavy losses in mining and resources stocks as precious metals prices continued to tumble.

At 9.16am, the JSE’s all share index had fallen 4.25 percent, weighed down by platinum stocks which fell 7.77 percent, gold miners which were down 7.45 percent and resources which lost 6.39 percent. Banks gave up 4.49 percent, financials lost 2.50 percent and industrials gave up 2.86 percent.

The rand was bid at R11.37 to the dollar from R11.14 when the JSE closed on Thursday. Dealers said the currency would experience another volatile day of trade as the dollar continues to surge and equity markets remain weak.

Gold was last quoted at $704.57 per ounce from $726.15 at the JSE’s last close. Platinum was at $787.50 per ounce, down 1.87 percent from Thursday’s close of $802.50. Brent crude was at $65.15 from its previous close of $65.92.

A trader said that even though the Dow ended up 2 percent overnight, the local market was following events in Asia. The trader added that although the US managed to recover, this did not have much of an impact in the light of recent losses.

He said that the weak rand was not having an effect because metals and resources prices continued to come under pressure and were weighing on the market.

The Nikkei closed 9.60 percent and the Hang Seng was last down 7.75 percent. In London the FTSE was last down just over 4 percent.

Dow Jones Newswires reported that European stocks fell, tracking losses in Asian markets overnight on continued concerns over health of the global economy.

“The fall is led by a broad-based sell-off with miners leading the declines and a host of warnings from companies are weighing heavily,” says a trader.

On the JSE, Anglo American fell R19.70, or 8.61 percent, to R209.05 and BHP Billiton gave up R8.28, or 5.44 percent, to R143.97. ArcelorMittal shed R6, or 7.23 percent, to R77 while Highveld Steel added R1.49, or 2.18 percent, to R69.99.

Petrochemical giant Sasol was down R11.99, or 4.41 percent, to R260.01.

AngloGold fell R16.99, or 9.39 percent, to R164, Gold Fields gave up R4.25, or 6.72 percent, to R59 and Harmony shed R3.94, or 5.34 percent, to R69.81. Platinum miner Anglo Platinum plummeted R35, or 8.24 percent, to R390, Impala Platinum gave up R7.55, or 7.06 percent, to R99.45 and Lonmin came down R19.22, or 8.94 percent, to R195.78.

Brewer SABMiller was down R4.10, or 2.73 percent, to R146.11, Barloworld lost R2, or 4 percent, to R48 and Tiger Brands fell R4.68, or 3.72 percent, to R121.

Standard Bank shed R3.52, or 5.03 percent, to R66.47, Nedbank shed R2.81, or 3.53 percent, to R76.69, Absa fell R2.05, or 2.51 percent, to R79.75 and First Rand was down 58c, or 4.95 percent, to R11.14.

RMB Holdings was down 70c, or 3.78 percent, to R17.80, but Investec gained R3.60, or 8.91 percent, to R44.

In the retail sector, JD Group gave up R1.50, or 6.12 percent, to R23, Foschini was down R1.95, or 6.08 percent, to R30.10 and Shoprite was down R2.01, or 4.28 percent, to R44.99.

Packaging group Astrapak lost 40c, or 6.67 percent, to R5.60 and construction group Aveng gave up R2.79, or 6.52 percent, to R40.01 and Group Five lost R1.21, or 3.13 percent, to R37.40.

MTN Group fell R4.66, or 5.62 percent, to R78.33 and Telkom was down R4, or 4.14 percent, to R92.70.

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PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Posted in AFRICA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENERGY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INTERNATIONAL, PETROL, PRECIOUS METALS, SOUTH AFRICA, THE FLOW OF INVESTMENTS | Leave a Comment »