Gold Share Fund

In a recent series of opinion we have looked at where in the world one invests in a precious metal share and the factors that must be considered. Also, should one invest in a gold fund, holding a spread of gold shares, or in gold shares direct?What is a Gold Share Fund? It is a fund that holds a selection of gold shares in terms of the prospectus of the fund and bought to achieve the objectives laid out in that prospectus.

It may be that the investment manager of the fund buys and sells shares that he feels would better suit the fund's objectives so varying the shares held. It may or may not state that it aims at maximizing total returns. It may set a short-term capital gain objective and earn its fees based to some extent on performance, charging additional fees for that performance. Or it may aim to achieve this objective through a long-term performance.

There can be an enormous variation of objectives or a tremendous amount of leeway given to the investment manager in the fund.  So the first step of any investor is to fully understand what leeway he has given to the investment manager and what the objectives of the gold share fund are, in detail.

Precious Metals Gold prices trading at US$130 premium over platinum

Gold: 1641.00 – down US$40 on the week. The only positive result for gold over the course of last week is that it is still trading at US $130 premium over platinum. Gold has rediscovered its inverse relationship with the US$ and it is now reacting positively and correlates to rises in equities and also with a stronger Euro.
The US$1600 level was not seriously tested but it seems that gold is firmly stuck, for the time being, between U$1600 and US$1695.

We have seen a pick-up in physical buying ahead of Diwali but it has been less than what we expected. I still look for the gold price to rise but this current see-saw action curbs a lot of enthusiasm and conviction out of the market.

Option volatilities midrates:  Gold atm
1 month       28.00 % up       0.75 %
3 month       28.30 % down 0.20 %
6 month       28.75 % down 0.75 %
1 year          29.40 % down 0.60 %
EFP (Exchange for physical) midrate: Gold spot to December Comex: US $ 1.05
ETF: Holdings nearly unchanged at 2326 tons overall
Support: 1585 and 1568       Resistance: 1664 and 1692
OUTLOOK: Neutral

Gold Bullion, price per gram Gold Bullion

Gold Bullion is most valuable precious metal - namely gold or silver. Gold bullion it comes from two main forms :- Gold bullion bars, and Gold bullion coins. What makes it gold bullion is simply that its value derives entirely from its precious metal content. Gold bullion has no artistic component in its value.Gold bullion coins trade quite close to the world gold price.The most traditional way of investing in gold is by buying gold bullion or gold bars. In some countries, like Canada, Argentina, Austria, Liechtenstein and Switzerland, these can easily be bought or sold at the major banks. Alternatively, there are bullion dealers that provide the same service. Bars are available in various sizes.

Price per gram Gold Bullion can we get from https://www.ukbullion.co.uk. Price on this site is Update per day. Gold bullion bars with weigh anything from a few grams upwards. 1kg and 100 oz (~3kg) bars are sometimes accepted by participants in professional bullion markets in Zurich and New York. There is usually a premium on those locations, because London is the world's main physical bullion marketplace. 

Is Gold a Metal?

Is gold a metal? this answer about this question is Gold or Au is a transition of metal, Gold is a metallic element with the atomic number 79 and the symbol Au. Gold is the most malleable, ductile metal. Described as yellow, gold is one of the so-called precious metals, along with gold and silver.While the name gold comes from an Old English word meaning yellow, the symbol comes from the Latin aurum, which means “shining dawn.” . It is one of the least reactive solid chemical elements. The metal therefore occurs often in free elemental (native) form, as nuggets or grains in rocks, in veins and in alluvial deposits. Less commonly, it occurs in minerals as gold compounds, usually with tellurium.

Gold has been a valuable and highly sought-after precious metal for coinage, jewelry, and other arts since long before the beginning of recorded history. Gold standards have been the most common basis for monetary policies throughout human history, being widely supplanted by fiat currency only in the late 20th century.

Value of Diamonds

Value of diamonds are measured by four characteristics known as the 4C's Letter. The 4C's Letter relate to a diamond's Cut, Colour, Clarity and Carat weight. The quality of a diamond is measured by its Cut, Colour and Clarity. The Carat weight measures the size of the diamond. Of all the 4C's Letter, Cut is the characteristic directly influenced by man; Colour, Clarity and Carat weight are all dictated by nature. 

Most natural diamonds are formed at high-pressure high-temperature conditions existing at depths of 140 to 190 kilometers (87 to 120 mi) in the Earth mantle. Carbon-containing minerals provide the carbon source, and the growth occurs over periods from 1 billion to 3.3 billion years (25% to 75% of the age of the Earth). Diamonds are brought close to the Earth surface through deep volcanic eruptions by a magma, which cools into igneous rocks known as kimberlites and lamproites. Diamonds can also be produced synthetically in a high-pressure high-temperature process which approximately simulates the conditions in the Earth mantle.

Types of Diamonds

What is types of diamond?The types of diamonds is Pink Diamonds ,White Diamonds, Champagne Diamonds, Pink Champagne Diamonds, Yellow Diamonds, Blue Diamonds, Green Diamonds, and Diamond Simulants.

Pink Diamonds
The pink diamond is the most rare and valuable diamond in the world's.

White Diamonds
White diamonds or i say a CLEAN Diamonds are produced by mines all over the world in a wide variety of shapes and sizes.

Pink Champagne Diamonds
This is an attractive champagne diamonds with secondary pink colour are also available and command a higher price per carat than champagne diamonds. These stones display slight to bold flashes of pink in their fire.

Yellow Diamonds
The beautiful yellow diamonds come in a broad range of shades ranging from light yellow to a rich canary colour.

Blue Diamonds
Amazing blue diamonds are available in a wide range of shades, from the blue of the sky to a more "steely" colour than sapphire.

Green Diamonds

Great green diamonds usually the colour is not very deep and is often removed during the fashioning of the stone.

Diamond Simulants
Cubic Zirconia
Cubic Zirconia (CZ) is the most commonly encountered diamond simulant.

Synthetic moissanite
Synthetic moissanite is a new diamond simulant to join the long list of products that imitate diamonds.

Diamond Mine Location

Where is diamond mine location?Before you know diamond mine location you must understand about what is diamond...a diamond is a transparent gem made of carbon, one of the earth's most common elements. The formation of diamonds began very early in the earth's history, when the condensation of solid matter into a sphere caused the centre of the planet to become subjected to incredible extremes of temperatures and pressure.

In the world, diamonds mine location in at least 20 countries around the world; the majority of diamonds are found in Australia, Zaire, Botswana, Russia and South Africa.

The Argyle Diamond Mine, the world's largest diamond-producing mine, is located in the Kimberley Region of north Western Australia.

Most natural diamonds are formed at high-pressure high-temperature conditions existing at depths of 140 to 190 kilometers (87 to 120 mi) in the Earth mantle. Carbon-containing minerals provide the carbon source, and the growth occurs over periods from 1 billion to 3.3 billion years (25% to 75% of the age of the Earth). Diamonds are brought close to the Earth surface through deep volcanic eruptions by a magma, which cools into igneous rocks known as kimberlites and lamproites. Diamonds can also be produced synthetically in a high-pressure high-temperature process which approximately simulates the conditions in the Earth mantle.

Metal mining of the global workforce

Metal mining currently employs less than one-tenth of one percent of the global workforce, but consumes seven to 10 percent of the world's energy. But the major impact is environmental and the huge amount of waste generated by mining.

"Mining companies have polluted our water resources and violated our right to a healthy environment in their rush to riches," said Kalia Moldogazieva, a mining activist from Kyrgyzstan whose open-pit Kumtor mine, owned and operated by Canada's Cameco Corp.. and partially financed by the World Bank's International Finance Corporation and the European Bank for Reconstruction and Development, has suffered a number of toxic spills and a 1992 cave-in that killed one worker.

In the United States, mines generate an amount of waste equivalent in weight to nearly nine times the garbage produced by all U.S. cities and towns combined, according to the two groups.

Based on gold-sales projections for the first two weeks of February, the two groups estimate that Valentine's Day sales of gold jewelry in the U.S. will have produced 34 million metric tonnes of waste worldwide.

Canadian miner Vena Resources will invest $ 2.2 million

Vena Resources will invest $ 2.2 million exploration program starting in Esquilache.Canadian miner Vena Resources announced today that it would begin an aggressive program of exploration by $ 2.2 million, including diamond drilling and underground development of three of the structures with higher gold and silver prospects in Cerro Mamacocha Esquilache polymetallic project located in Puno.

In February this year, the miner announced it is investing more than $ 12.2 million to advance Azulcocha project, located in Junín and Esquilache.

Vena plans to continue advancing the project Esquilache, along with his partner Minera Silex Peru, a subsidiary of Golden Minerals Company, one of the largest worldwide.

The investment of U.S. $ 2.2 million would be made following the recommendations of the report made ​​on the Coffey Mining Pty Esquilache project, based on results of work performed by Vena on the property since 2007.

These works include an extensive geological mapping, surface 2.378 samples, 431 soil samples, 93 kilometers of geophysics and diamond drilling 31 holes on the surface for a total of 5.710 meters.

The property comprises Esquilache 1.000 hectares and is located 850 kilometers southeast of Lima, in the middle of a volcanic caldera 30 square kilometers that is home to the San Antonio Silver Mine Esquilache.

The World's Biggest Miner buy Ferrous Resources

BHP Billiton, the world's biggest miner, is close to launching a bid of 2,000 million pounds (about U.S. $ 3,200 million) for the Brazilian iron ore miner Ferrous Resources, reported Sunday the Sunday Times.

The magazine said, without citing sources, that the negotiations between BHP and Ferrous Resources began this year and intensified in recent weeks.

Another alternative is to buy a stake in BHP Ferrous Resources in place to launch a buyout offer, the newspaper said, citing unidentified sources.

BHP declined to comment, while Ferrous Resources could not be reached immediately.

Ferrous Resources last year abandoned a listing on the London Stock Exchange could have been valued at over U.S. $ 3,000 million.

Gemcom Software International Inc, the Largest Global Supplier of Mining Software Solutions

Gemcom Software International Inc., the largest global supplier of mining software solutions,Wednesday, August 3, 2011, announced that it has released the latest version of its award-winning Gemcom InSite “mine production management solution”. InSite records and evaluates data for service, support and production activities from the mine through to saleable product, providing confidence in data accuracy, and visibility into all areas of production.

The latest version of InSite features two new modules that assist with the execution, management and visualisation of the progress of mining tasks. The Shift Management module provides transparency into shift planning along with inbuilt shift handover functionality, solving problems relating to inefficient use of shift time and conflicting activities or bottlenecks.

The Central Monitoring module gives a graphical, real-time view of the entire mining operation with visual representations of all active tasks. This provides visibility into all areas of production management, allowing mine and plant operations to rapidly respond to changing conditions.

"InSite 4.0 continues to build on its strengths in material movement, stockpile management and reconciliation with the addition of the new Shift Management and Central Monitoring modules. It also incorporates rich visualisation capabilities - a key component of the release – and further refines the great user experience it delivers," said Charlie Forrest, Gemcom's product manager for InSite.

The 13th CHINA MINING Congress

The 13th CHINA MINING Congress Will Be Held On November 6-8, 2011.

As one of the largest mineral production and consumption countries, no one can ignore the importance and involvement of China in the global mining industry. More and more companies would like to have business with China, one of the biggest buyers and investors worldwide, especially in mining and energy related.

CHINA MINING Congress and Expo, on her 13th annual year, is the unique platform to meet government people, mining companies as well as the services providers in the industry from China and other sixty countries and regions.

Hosted by the Ministry of Land & Resources and the Tianjin Municipal Government, the 13th CHINA MINING Congress & Expo 2011will be held at the Tianjin Meijiang Convention Center on November 6-8, 2011.The theme of CHINA MINING 2011 is Strengthen International Cooperation, Accelerate Geological Exploration & Mine Development.

As one of the largest mineral exploration and mining trading platforms, CHINA MINING covers the whole value chain, including geological survey, exploration development, mining rights trading, mining investment and financing, smelting and processing, technique and equipment, mining services, etc. CHINA MINING plays a critical role in creating more communication and co-operation opportunities for domestic and international industry communities.

Profit From Mining Commodities

Mega Capital Indonesia (MCI) in Commodity Outlook disclosed that mining commodities show a rising graphic. Coal, for instance, booked a 39% increase in price in 2010 and the price of the commodity is predicted to increase by 16% to US$115 per metric ton in 2011 from US$98.97 per metric ton previously. 

This year, the company targets income to increase by 63% to US$2.9 trillion from the income in 2010. In the meantime, the net profit is predicted to increase by 88% to US$155.8 billion.

In the meantime, the performance of PT. Hexindo Adi Perkasa, Tbk (HEXA) at the stock exchange remains below the expectations because the distributor of Hitachi and John Deere brands are affected by Tsunami hitting Japan some time ago. However, the recovery of factory in Japan makes the corporate management optimistic that the company may reach the maximal outcome up to late 2011.

Even the company has secured heavy equipment sales contracts worth US$200 million from coal mining companies. The contracts are effective for the fiscal year of April 2011 – March 2012. The company obtains order to supply around 100 units of heavy equipment with the selling price around US$2 million per unit. This year, the sales are expected to increase by 30% t0 3,000 units.

In line with the rising sales, the corporate income is predicted to reach US$500 – US$600 million with the net profit around US$ 50 million. The company has not revised the selling target this year because recovery in Japan is faster than the prediction.

Gold Recorded a More Significant Increase in the Price

In the first six months of 2011, gold recorded a more significant increase in the price, compared to other minerals. Analysts predicted that the price of the commodity would be corrected late 2011. In fact, early August, gold carved again another history with the highest price hike. Would the commodity continue to record price hike significantly or decrease? The condition in the United States is highly decisive.

In the January – June 2011 period, the price of gold rose by six percent and was closed at a level of US$1,500/troy ounce late June 2011. In the second quarter of 2011, the price of the precious metal increased by five percent.

The price of gold in the first half of 2011 was in sharp contrast to other commodities, which encountered price decrease. Tin was corrected by four percent, nickel price decreased by five percent and coal price also dropped by five percent.

Interestingly, even though the price of gold moved upward in the first half of 2011, even late year, Mega Capital Indonesia (MCI) predicts that the price of the precious metal would decrease from the previous year level.

The price of gold increased by 30% last year and is predicted to decrease by 16.8% to US$ 1,020/troy ounce this year, from the average price of US$ 1,227/ troy ounce in 2010.

Analysis by MCI shows that the average price of gold rose with CAGR +22.5% from US$ 445/troy ounce in 2005 to US$ 1,227/troy ounce in 2010. In the five years to come, 2010-2015, the price of gold is predicted to decrease with CAGR -2% to US$ 1,109/troy ounce.

However, demand for the precious metal rebounded after signal shows that US economy would slow down because of debt issue. The condition encouraged investors to take safe position by investing in gold sector as safe haven.

The demand for gold remained kept increasing after rating institute Standard & Poor's revised downward the rating of the United States to AA+ from AAA because of political uncertainties, rising expense on debts as well as negative outlook.

BHP Billiton (NYSE: BHP), the world’s largest miner

The Times reported that BHP Billiton (NYSE: BHP), the world’s largest miner, is close to launching a $1.3 billion bid for Ferrous Resources, a Brazilian iron ore producer controlled by a number of international hedge funds including Philip Falcone’s Harbinger Capital.

According to The Australian, Ferrous is valued at some $3.9 billion, with the company “needing to spend about $5bn developing its Viga mine in Minas Gerais state in Brazil, which would include a 400km slurry pipe to carry the ore to its own port at Presidente Kennedy in nearby Espirito Santo state.”

Astra Resources Mining

Astra Resources has secured the first of four trading licenses covering the main iron ore producing regions in Orissa. The licences allow Astra to trade and transport self-mined and third party mined iron ore to Paradip Port for export from the company’s storage and shipping site.




Astra’s CEO Dr Jaydeep Biswas says securing this licence, which covers the Koira District, in the city of Suhdargarh, to Paradip Port, is a major milestone for Astra. “Astra can begin trading iron ore from third parties into the international market while further developing our own mining operations for domestic use and export.

“We are in the process of securing the remaining three licences which will enable Astra to transform its land at Paradip Port into a major iron ore export hub. The remaining three licences are in the districts of Jajpur, Sundergarh and Keonjhar.”

Although Orissa has a long coastline of 480km, Paradip is the major all-weather port, with expansion plans only enhancing the accessibility of the port to internal and external exports. Paradip has its own railway system and is connected to East Coast Railways and various other highways, enabling iron ore to be transferred to the port for storage and export with ease.

Impact of Mercury on Environment and Health

Studies show that small-scale gold mining has been proven to produce mercury affecting environment and health because most of the mercury used in smallholder mining would be released directly to the environment. At the beginning, mercury waste would pollute atmosphere, soil and local water flow, which in due time will endanger health of miners and surrounding communities.

Pursuant to Journal Science of the Total Environment Vol. 408 (2010: 713–725), based on study in Talelu (North Sulawesi) and Kerang Pangi (Central Kalimantan), some 17% of the creature population in Talelu is infected by mercury toxin. In Kerang Pang, the percentage is 32%. In addition, some 24% of the miners in Talelu and 43% of the miners in Kerang Pangi has been infected by mercury. In the meantime, some 55% of miners working directly in smelter amalgam in Sulawesi, and 62% of the workers in Kalimantan has been proven infected by mercury.

Following blood, urine and hair diagnosis, the disease generally suffered by the infected people is brain failure, such as ataxia, tremor, and movement disorders. Moreover, related to impact of mercury on the environment around smallholder mining, Yuyun said that the content of mercury in air in Poboya has reached the maximum limit. “Mining site Poboya is on a hill and the content of mercury in the air is 20-40,000 nano gram/mᵌ. However, the average content is only 5.000 nano gram/mᵌ. It has reached the maximum limit and surrounding people should have been evacuated,” said Yuyun.

For information, the tolerable standard of mercury content is 400 nano gram/m3 in Japan and 1,000 nano gram/m3 in the United States (US Environmental Protection Agency). If the content of mercury in air reached 1,000 – 10,000 nano gram/m3, the granted instruction is preparing for evacuation. Evacuation is a must if the content exceeded 10,000 nano gram/m3.
In the meantime, related to impact of mercury on health, Yuyun said that the impact is categorized as the worst if it has affected babies and children because it is potential to downgrade intellectuality. She frequently found a fact in areas around smallholder mining in Palu that miners suffered from serious skin disease allegedly attributed to mercury.

“We frequently receive information that miners suffered from injuries in their skin. Even though the cause has not been examined clinically, we may associate the disease is attributed to mercury,” said Yuyun, adding that her side has not examined clinically impact of mercury on health of people living around smallholder mining.

“Indeed, we have not conducted clinical test but in view of the existing incidents and reflecting from the previous mercury-related issues, it is not wrong if we start socializing the danger of mercury as from now, instead of waiting until one is victimized,”she said.

Based on the realities, Yuyun said that her side has cooperated with parties to overcome mercury issue. The cooperation is realized by, among others, a program called Development of National and Regional Approaches to Environmentally Sound Management of Mercury in Southeast Asia.

644.098 tons Copper in 2011

Indonesia’s copper production is predicted to decrease by 36% to 644.098 tons in 2011. The downtrend will continue in 2012 when the production is estimated at only 609,171 tons. The output decreases because any of the national copper producers, PT Newmont Nusa Tenggara (NNT), just secured approval to expand land for mining activity of the sixth and seventh phases.

The production is predicted to start increasing after 2013 and so on. The production of copper may reach 899,923 tons in 2013, rising by 47% from 2011 and 2012.

Most of the copper produced in Indonesia has been destined to the export. The export volume was 915,254 tons in 2010 and is estimated at 579,688 tons in 2011 and 548,254 tons in 2012.

In the meantime, PT Freeport Indonesia (PTFI) in the second quarter and first semester report disclosed that the US-based company produced 1,917 million pound of copper up to June 2011, compared to 1,859 million tons in the same period last year.

Papua contributed 545,000 pounds to the total copper production of Freeport in the first semester of 2011, compared to 555,000 pounds in the same period last year and the sales decreased to 543,000 pounds in the first semester of 2011 from 555,000 in the same period last year. In the term of the price, the price of copper resulting from the Cendrawasih land was US$4.23 per pound, higher than US$3.05 per pound in the same period last year.

Up to late 2011, Freeport targets to produce copper as much as 35 million pounds. Viewed from the target, the realized production remains far below the expectations.

Now, the US mining giant is preparing underground mining project in Grasberg Block Cave and Deep Mill Level Zone (DMZL). The development of infrastructure for DMZL has been executed in the fourth quarter of 2010 so that the project is expected to start producing late 2012 with the production around 7,000 metric tons of ores per day.

Up to June 2011, the volume of copper sold from Indonesia reached 265,000 pounds, compared to 259,000 pounds in the same period last year. It is not wrong if the government targets that national copper production would rebound in 2013 in line with the operation of mining facilities in the two major mining locations in Indonesia

Discussing Copper Issue 2011-2012

in Lisbon, Portugal, discussing Copper Issue 2011-2012, ICSG predicts that global smooth copper production would increase by 380,000 tons this year from 2010 when the deficit was 250,000 tons. The rising production is driven by the high price of copper and growing demand from end-users. It is also driven by the demand from industry, which continues to grow in 2011.

At the event attended by copper producers and users, the production of copper is expected to grow six percent in 2011, compared to 4.3% in 2010.

However, the forum is also realistic so that the target of the production is revised again in view of global uncertainties. ICSG observes factors so that the target needs revision. Among them are earthquake and Tsunami in Japan, political uncertainties in the Middle East and Africa, changes in financial policies and uncertain copper market dominated by China.

Finally, in view of the conditions, ICSG predicts that copper production would increase by 3.5% to 19.7 million in 2011 and the conditions are expected to change so that the production could grow by five percent in 2012.

Consumption of smooth copper is predicted to increase by four percent from last year to 20,000 tons. The consumption is expected to grow above four percent in 2012 following the improvement of global economic condition.

Copper Production would Increase Slightly in 2011

The International Copper Study Group (ICSG) predicts that copper production would increase slightly in 2011. Disaster in Japan, financial policy and political disturbance causes copper production to not increase significantly. In addition, the price remains flat, not down or up significantly. From September 2011 to January 2012, the price of copper at London Metal Exchange (LME) ranges from US$8,813.75 to 8,837.00 per ton.

In a report July 2011, ICSG disclosed that the market of smooth copper up to April 2011, reflected a production deficit up to 36,000 metric ton even though the smooth and ready-to-use copper, based on seasonal calculation, showed a surplus of 46,000 metric tons.

In the first four months of 2011, according to data presented by ICSG, copper consumption grew by 1.2% from the same period last year when the consumption decreased by seven percent because consumption in the world’s largest copper consumer, China, decreased by 40%.

Even though China recorded a decrease in demand for smooth copper, other countries booked an increase. The demand rose by 89% in Russia, 2.2% in European Union and 2.2% in the United States.

The United States and European Union continue to recover following the recession even though the growth is slower than last year. Regionally, demand for copper grew by five percent in Africa, 3.7% in America, 9.3% in Europe and 38% in Oceania but decreased by 2.8% in Asia.

ICSG also reported that copper production increased by two percent in the first four months of 2011 from the same period last year. The production of concentrates also rose by three percent, while the output of Solution Extraction-Electrowinning (SX-EW) decreased by 1.5%.

The data reflects an increase in production, compared to last year, because of operational obstacles, thus forcing Australia and Mexico to reduce their production. The production decrease was also visible in major copper producers, such as Chile, down by 1.4%, the United States (4.5%), Indonesia (18%) and Republic of Congo (16%).

Twin Metals Minnesota and Bechtel

Twin Metals Minnesota announced on September 21st that Bechtel Mining & Metals, a member of the Bechtel engineering, construction and project management group, has been selected as the lead consultant for the prefeasibility study (PFS) on Twin Metals’ proposed underground copper, nickel and platinum group metals (strategic metals) mine in northeastern Minnesota.

The PFS will determine critical details of the Twin Metals’ project, setting the stage for formal and thorough environmental and regulatory review. Bechtel will relocate a dedicated team of experts to St Paul to serve the project. Andres Morel, CEO of Twin Metals Minnesota, said: “Today we’ve added a world class partner to our project. 

Bechtel further strengthens the best-of-class team of men and women Twin Metals has assembled to develop a modern, environmentally sensitive and economically sustainable underground mine that will generate economic growth, jobs and prosperity for generations of Minnesotans.”

Martin Engineering

Martin Engineering has installed a new paint line at its global manufacturing headquarters. The facility will allow the company greater control over preparation, coating and curing for material handling components used in the mining industry.

Upon completion of the new four-stage coating line, manufacturing personnel are now washing, drying, painting and curing with greater efficiency.  Manufacturing supervisor, Mark Daum explained: “With the new equipment in place, we’re able to eliminate much of the potential variability that can plague a coatings operation. Having control of surface preparation and cure times has helped us create a reliable, repeatable process for achieving the paint quality we want on our products.”

Ukraine-based mineral sands

Ukraine-based Velta has placed an order with Multotec for the supply of NHM and SC20 spiral concentrators to process minerals from an opencast operation in the Birzulovo ilmenite deposit in South Ukraine. Delivery is scheduled for the end of October 2011, and Multotec engineers will be deployed to the site with representatives from Multotec’s local distributor, DIN, to supervise installation and commissioning.

Dean Lincoln, general manager – marketing and business development at Multotec, said: “This is one of the biggest projects of its kind in the country in recent years and is being supervised by the new government of the Ukraine to revive its national mineral sands sector. A recent order from India for a similar industry, together with this prestigious order from Velta, has firmly positioned us as one of the leading players in the international heavy mineral and minerals sands markets. “The Multotec NHM spiral was developed specifically to treat low grade mineral sands. It is one of our latest offerings for maximum recovery of heavy minerals.” The Multotec NHM spiral is a modification and replacement of the previous SC22 spiral.

The pitch of the Multotec NHM spiral is shallower to accommodate low grade heavy mineral sands. With a trough of 700mm diameter, the spiral has the capacity to handle between 1 to 2.3t/h dry solids tonnage at a weight solids dilution of 30-35%.

London’s mining companies improve as commodities increase

London’s mining companies improve as commodities increase. A plus bright prospect for commodities has helped London’s mining companies to betterments excess the beyond week.

The class was headed for a mutual return of again than 2% as commodities enjoyed alone of their conquer weeks in the beyond six months beside nugget plus copper, most notably, making increases.

Regardless nay making an edict, nugget digger Petropavlovsk responded most positively to the provisions, adding further than 12% to clue sum stopgap companies.

The Russian-focused group has endured a fussy year on the market furthermore bides about 40% feather on its 2010 closing expense.

Further nugget partnership that has wise a challenging 2011, Centamin Egypt Ltd, more made terrain among a 7.5% accelerate.

The corporation reported a 67% climb in output from its Sukari nugget pit in Egypt throughout the September sector to encourage the realize.

the Ukrainian stubborn-turquoise producer, too about 12% to be single of the most momentous gainers. Throughout the week UBS upgraded the enterprise from impartial to bribe as rumours proliferate it might be the expose of a takeover stab.

Kenmare Stopgaps plc added near to 9% as it exists to commute the superior fees of mineral sands, which it begets from its Moma function in Mozambique. The troop is a contender for the year’s supreme-performed mining broth, having risen better than 20%.

Anglo American plc exhausted marginally upper past Chile's nation-owned copper producer Codelco said it planned to praxis an choice to obtain 49% of Anglo's tributary in Chile, Anglo Sur, primitive behind year.

Codelco has reached an entente accompanying Mitsui & Co that would give it among US$6.75 billion in funding to bankroll the deliver.

BHP Billiton was up about 5% after releasing news regarding its Olympic Blockade development in South Australia.

Gold Dividend Gimmick Means Sell

Gold Resources (GORO): Gold Dividend Gimmick Means Sell

The absurdity brigade has finally arrived. On October 10, 2011, Barron’s reported, in an article titled “Paying Dividends in Gold Instead of Cash: Gimmick or Real Deal?,” that the president of Gold Resources Corp. (GORO) plans to introduce the dividend payments in gold. The president, Jason Reid, spoon fed the standard sub-standard explanation for why such a policy is what investors want. Reid said the following:

“Many investors would rather hold physical gold or silver rather than fiat currencies that will continue to be debased”

Taking a cursory look under the hood of Gold Resources (GORO), we find that there is absolute no reason for a dividend policy to begin with. Considering that we’ve been in a rising gold market since 2000, Gold Resources Corp. (GORO) should at least be able to demonstrate some form of profitability. Unfortunately, not only is GORO absent any profits, it lacks any semblance of fundamental value.

As an example, the price to book ratio is 21 and the price to sales ratio is 23 times in the trailing 12 months. Profit margins, return on equity and return on assets are all in the negative. So where does Gold Resources (GORO) plan to pay for the dividend in gold? We don’t know.

As has been the case in the past, only the least credible and unprofitable gold companies initiate a dividend policy offering payments in the form of gold. Our first warning of dividend payments in gold was in 2009 (found here) and our most recent Seeking Alpha article titled “The Coming Precious Metals Dividend War” detailed what was expected to occur.

The initiation of dividends in the form of gold by Gold Resources (GORO) isn’t the nail in the coffin in the current gold bull run. Instead, it may be an indication of a cyclical or short-term top in the gold market. Even the perceived short-term benefit of receiving gold dividends and a possible rising stock price isn’t enough to offset receiving payments in a debased fiat currency when GORO is ultimately going to become a penny stock.

With so many high quality dividend paying gold stock alternatives like Barrick Gold (ABX), Newmont Mining (NEM) and Agnico-Eagle (AEM), long-term shareholders of Gold Resources (GORO) should sell the stock at their earliest opportunity.

Precious Metals Dividend War

The coming precious metals dividend war.On September 9, 2009, we wrote an item titled “Silver Should be the Focus.” In that thing, we cautioned primers to “be heedful of the impending competitive share crusade among precious metal companies. I recollect unit, pronto dead, nugget assembly that paid absent the share in genuine nugget. These are many gimmicks to cajole investors in at a date whereas the govern of the lifetime should be ‘head to the passages.’”

The pioneer cannonades of the impending combat to draw investors to precious metal descents own been initiated. In April 2011, Newmont Mining (NEM) started what it deemed “… the business’s maiden also just bonus course linked soon to the realized nugget expense…” Naturally, this isn’t the leading stretch that nugget-linked shares own existed, nevertheless it pushs truly well to those unaccustomed beside nugget trusts plus their share policies. On September 19, 2011, Newmont Mining announced a and enhancement of the “first always” nugget linked bonus procedure accompanying the next revises;

The enhanced line volition live to join the quarterly bonus merit to commutes in the nugget expense yet testament plus endow an other stage up of 7.5 cents apiece quota whereas the Squad’s realized nugget worth for a sector excels $1,700 apiece ounce also a serve phase up of 2.5 cents through interest (10 cents in utter compared to the alive strategy) whereas the Gang’s realized nugget worth for a sector surmounts $2,000. At middle realized nugget worths subordinate $1,700 apiece ounce, the tide bonus strategy continues unchanged. Newmont’s quarterly nugget worth-linked bonus expenditures are based on the Gang’s common realized nugget expense for the before sector.

PNG nickel mine have 200 million tonnes of waste

Regardless a rancourous deny among regional landowners through amends also infrastructure inclines plus an plead upon a Papua Unfamiliar Guinea Elevated Yard predominant approving the dumping, Australia’s Highlands Peaceable on Friday said it is hopeful it could jurisdiction on its earlier built explosive then year since the intervention of a regional governor. 

The wrangling through the $1.5 billion Ramu nickel furthermore azure cavity that done its spirit volition eyesore 100 million tonnes of murder 400m offshore befalls as the modern PNG’s administration leaves to repress apprehensions about proposed revisions to mining prerogatives that would potentially make propositions substance billions of dollars toward renegotiation. 

Papua Unprecedented Guinea Explosive Oversee adduces the narrow governor as axiom the central brood had been that local landowners wanted peak significant participation in the explosive moreover that convention merits offered by the administration were ample superior compared to the Chinese. 

Ramu is located on Papua Fresh Guinea’s north-west bank also is fully built – flower output is estimated at better than 31,000 tonnes of nickel moreover 3,300 tonnes of azure for through 20 years. Highlands Peaceable has an 8.56% investment in the explosive, which is owned by Metallurgical Corp of Tableware.

Knowledge workers as innovators

Canada’s Innovation Strategy recognizes that innovation and knowledge will play a significant role in the sustainability of the Canadian economy. According to Industry Canada, as Canada’s human capital shrinks and ages, the sustainability of the Canadian economy will be partially dependent on its ability to shift towards a leaner knowledge-based economy. 

“Innovation has been repeatedly linked to economic progress, and there is a direct relationship between innovation and skilled and talented human resources” says Thomas Hynes, Executive Director of the Canada Mining Innovation Council. “There are many ways to innovate, yet resource-based industries tend to focus on extraction-process innovation ahead of product innovation. A recent study of Canadian innovation performance found that Canada has a reasonably good rate of innovation for products but is relatively weak in process innovation; so this is a possible area of growth for knowledge workers in mining” Mr Hynes reasons. 

Canadian mining industry stakeholders generally believe that Canada has lost ground in recent years as other countries have poured more money and resources into research and development. The knowledge workers’ role as ‘innovator’ is therefore defined in the overarching national innovation strategy, and is further supported in the Canadian mining industry context.

Teck will invest US$200.4 million

Teck Resources has announced that it is investing in two of its operations in British Columbia, Canada. Teck will invest US$200.4 million at its Trail Operations to significantly increase its capacity to recycle end-of-life electronic waste (e-waste) and US$453.4 million in a mill modernisation project at Highland Valley Copper. 

Don Lindsay, president and CEO of Teck, said: “These projects will improve the long-term viability of two of our key operations.” The No.4 Furnace Project at Trail Operations includes the construction of a new slag fuming furnace and settling furnace that will integrate into the existing lead smelting process. Construction on the project will begin in 2012 with completion scheduled for 2014. “This is part of our ongoing commitment to the community of Trail,” said Mr. Lindsay. “Last year we recycled just over 13,000t of e-waste at our Trail Operations, and this project will significantly increase our capacity to recycle end-of-life electronic components, helping to keep them out of landfills and allowing for the recovery and reuse of valuable metals.” 

The 40-year-old mill at Highland Valley Copper will be modernised and will extend the life of the mill to match the expected mine life. The project is also expected to increase mill throughput by approximately 10% and copper recoveries by approximately 2%. Construction will begin immediately, and the project is expected to be completed by the end of 2013. Mr. Lindsay added: “We have significantly extended the life of the Highland Valley Copper mine in recent years, and the modernisation of the mill makes sense, especially given the expected increases in throughput and copper recoveries.”