• 1 hour Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 3 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal

This $16 Billion Fund For Gold Mining Could Shift Market Dynamics

This $16 Billion Fund For Gold Mining Could Shift Market Dynamics

One of the world's largest sources of funding for gold miners was announced this weekend. But you have to be in the right part of the globe to grab a piece of the investment cash.

China announced that it is leading a massive fund-raising for gold projects. With the country's Shanghai Gold Exchange (SGE) expected to help create a pool of capital totaling 100 billion yuan -- or about $16.1 billion dollars.

The news came at a major trade and investment forum in China's northwest Xi'an City. With officials from China's Industrial Fund Management Company here saying that the billion-dollar fund will investment in gold miners operating in one specific geographic area.

The Silk Road.

This obscure-sounding area was outlined by Chinese officials last summer as a major zone of economic focus for the country. As the image below shows, China's "Silk Road Economic Belt" (along with the southern "Maritime Silk Road") stretches from China itself in the east, all the way to Italy in the west. Related: China To Create An Oil Supermajor Twice The Size Of Exxon?

SilkRoad

Some 60 countries from the Silk Road will reportedly invest in the new gold fund. With the stated goal being to fund gold miners in order to obtain bullion for central governments here. Related: Saudi Arabia Planning For Transition To Renewables

The fund is also part of a plan to "increase the influence of [Chinese currency] RMB in gold pricing", according to Chinese officials.

The key question is: which gold projects could receive funding from this new vehicle? Officials for the fund specifically mentioned countries such as Afghanistan and Kazakhstan as potential targets. But there are certainly more countries in the belt that could be sources of bullion production.

Beyond the Stans, important mining nations on the Silk Road include Iran and Turkey. And even spots like Serbia further west. Related: China Gaining Influence In This Key Emerging Coal Market

Indonesia and India are also well-positioned on the maritime route. And even a further afield place like Kenya might get attention for gold.

Whatever the case, if the fund does get raised, this is going to be a leading source of mine financing. Watch for more announcements on the completion of the $16 billion investment vehicle.

Here's to the yellow brick road,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News