Metals

• Gold Bugs - Keep An Eye On The Canadian Dollar To Keep Confidence

  It hasn't been the best of days for the gold bug community (of which I am proud to be a member). While we did open 2012 at $1564 -- and thus are up around 4% year-to-date -- the fear still persists, with rumors that the September 5, 2011 high of $1,920 is a top that will not be revisited for some time, if at all. The PDAC show revealed that our own industry was concerned about fundraising for future mining operations. Mainstream journalists like Joe Weisenthal are making fun of us.All those are contrarian indicators, of course, and the fact…

• Gold Producers on the Edge as Touareg Rebellion Forces Coup in Mali

  Overrun by a Touareg separatist rebellion and an increasing threat from Al-Qaeda in the Islamic Maghreb (AQIM), the government of Mali has been overthrown in a coup d’état by mutinous soldiers who seized the presidential palace on 21 March and installed a transitional council, promising to hand over power after new elections. On some level, this is partly fall-out from the conflict in Libya, from whence Touareg rebels who fought alongside Gaddafi returned home new empowered and emboldened. The Touareg are seeking independence for the north, and a number of recent developments have made their collusion with AQIM convenient, threatening…

• Burma - Truly One of the Last Untapped Energy Frontiers, Opening for Business

  Investors, looking for sure bets, can stop reading right now.For those seeking overlooked energy "final frontiers," well, there’s now – Burma.According to the secretary of Burma's largest business federation, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Myo Thet, he has been meeting with companies "every day for a year" even though "there is still rather low interest from the West. There have been some bank owners from the west and also Australia but it’s still low compared to Asian countries. We wish to see more (investment) not only from the East but also the West...…

• Can China's Monopolisation of the REE Market be Reduced?

  What does this percentage refer to? 97% That's the percentage of global production of Rare Earth Elements (REEs) controlled by the People's Republic of China. But even with a virtual monopoly, sales are sluggish in the REEs business. BEIJING (AP) — China announced a cut Tuesday in its rare earths export quota as it tries to shore up sagging prices for the exotic metals used in mobile phones and other high-tech goods. China accounts for 97 percent of rare earth output and its 2009 decision to curb exports while it builds up an industry to create products made with them…

• Commodity Prices Will Remain High and Volatile for the next 20 Years: McKinsey

  Just looking at a new article from global consultants McKinsey about the state of world commodities and the outlook looks bleak, to say the least. (Original here) “Our research shows that during the past eight years alone, (commodity prices) have undone the decline of the previous century, rising to levels not seen since the early 1900s,” according to McKinsey. “In addition, volatility is now greater than at any time since the oil-shocked 1970s because commodity prices increasingly move in lockstep. Our analysis suggests that they will remain high and volatile for at least the next 20 years if current trends…

• Is Platinum’s Next Move Down?

  Platinum is looking increasingly vulnerable. Net speculative length has been dropping for some weeks now and, as this graph from a Standard Bank report to investors shows, the trend has been generally down for much of this year. The net position is mostly due to an increase in short positions – those investors expecting a decline in prices – than a major exit of longs. This equates to a market with a weakening expectation of future prices.Source: Standard Bank In lockstep with rising short positions is an ETF market that appears to have lost faith in the platinum market. As…

• Peak Metal: U.S. Preparing for the Coming Shortages in Metals and Minerals

  Many if not most metals, rare earth minerals and other elements used to make everything from photovoltaic panels and cellphone displays to the permanent magnets in cutting edge new wind generators and motors will become limited in availability.  Geologists are warning of shortages and bottlenecks of some metals due to an insatiable demand for consumer products. 2010 saw China restrict the export of neodymium, which is used in wind generators and motors. The move was said to direct the supplies toward a massive wind generation project within China.  What happened was a two-tiered price for neodymium formed, one inside China…

• Afghanistan - Newly Discovered Mineralogical Treasure House (Again)

  As the U.S.-led Afghan campaign lurches into its second decade, the country’s vast untapped mineralogical resources are again emerging in the Western media, seemingly underpinning the benefits of International Security Assistance Force troops “staying the course” and defeating the insurgency, after which these resources can be tapped, both providing the administration of Afghan President Hamid Karzai with a source beyond drugs for reconstruction and Western companies who develop the reserves a handsome profit. The latest discovery is that Afghanistan is rich in rare earth elements (RREs). China currently has a near monopoly on the global production of RREs, and the…

• Malaysian Environmentalists Lead Opposition to Rare Earth Processing Facility

  With the price of rare earth elements due to China’s de facto monopoly now running at more than $100,000 per tons of unprocessed ore, it would seem that countries would be lining up to attempt to gain a piece of the action. Many are, with operations extending from Estonia to Mongolia. While the 17 elements, are not in themselves radioactive every global rare earth ore deposit is found amongst radioactive thorium deposits. But the Third World model of attracting foreign investment, even in so rich a potential investment has aroused environmental concerns in Malaysia over the effects of such operations,…

• Growing Controversy over Molycorp’s Plans to Mine Rare Earth Elements

  On Tuesday, the New York Times ran a story stating Molycorp, currently America’s only operating rare earth materials producer, will soon announce a heavy rare earth metal deposit right near its Mountain Pass operations. In addition, Molycorp has mining rights and regulatory approval for the deposit to “continue for decades.” According to the story, Molycorp CEO Mark Smith said in a phone interview on Monday that the company might be able to produce heavy rare earth metals in a little over a year. The heavy rare earths in the deposit include: europium, terbium, dysprosium and yttrium, according to Technology Metals…