Thursday, 12 May 2011

Felix Salmon ....new movie, Too Big To Fail...

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Mineweb.com - Domestic Chinese silver consumption outpaces China supply-CPM Group - WHATS NEW | Mineweb

Mineweb.com - The world's premier mining and mining investment website Domestic Chinese silver consumption outpaces China supply-CPM Group - WHATS NEW | Mineweb

Domestic Chinese silver consumption outpaces China supply-CPM Group

Precious metals consultants, CPM Group, predict Chinese silver fabrication demand will rise 15.6% to 177.2 million ounces this year, well exceeding the forecast 104.6 million of domestic silver mining production.

Author: Dorothy Kosich
Posted: Wednesday , 11 May 2011

RENO, NV -

In their Silver Yearbook 2011, New York-based precious metals consultants CPM Group is calling attention to China's importance not only as the world's third largest silver miner but also as a major global silver consumer.

While Chinese silver mine supply accounted for roughly 16% of global silver mine production last year, CPM Group noted the country was also a major manufacturer of many silver-containing products, such as electronics, solar modules, brazing alloys, and jewelry.

For the first time, CPM was able to integrate domestic fabrication demand and investment demand statistics for China's silver market and integrate those statistics into its market economy supply and demand data for this year.

CPM said it has worked to develop better estimates of silver use in China and developed what it feels are sufficiently reliable statistics on Chinese silver mine production, scrap recovery, and fabrication demand by major industrial category, relying on a network of industry associations and industrial participants in these markets.

"China's silver market is roughly three times the size it was in 2000," CPM noted in its recently published Silver Yearbook 2011. "China is the third largest producer of mined silver in the world. China also is a major consumer of silver, absorbing large and rapidly growing volumes of silver in its electronic manufacturing sector."

"Chinese silver mining witnesses significant growth and development in recent years, fueled by technological strides in exploration and an increase in production in response to steady growth in domestic and international demand," CPM said.

For instance, CPM found domestic demand for silver has outpaced supply growth. "China was a net exporter of silver until 2006, but became a net importer in 2007."

"Chinese investment demand for silver coins and medals began to rise at a double digit pace in 2008, a trend likely to continue as consumers seek to preserve their wealth amid rising inflation in the economy," CPM forecast.

The Chinese mine supply of silver totaled 102.7 million ounces in 2010, according to CPM. More than two-thirds of that output is from silver contained in copper, lead, zinc and gold concentrates. "Consequently, China's refined silver production has been growing in tandem with base metals output."

CPM predicts silver mine production could increase to 104.6 million ounces this year. "China's silver mine supply is expected to increase over the next few years, driven mainly by production expansions at silver-producing base metals mines."

Jiangxi Copper, one of the largest copper producers in China, was also among the biggest refined silver producers with 14.8 million ounces of refined silver in 2010. The country's total refined silver output in 2010 was estimated at 194.4 million ounces.

CPM forecast that Jiangxi could produce 15.6 million ounces of silver in 2011. The precious metals consultants estimated Jiangxi has about 341.8 million ounces of silver in proven reserves.

China could also see more silver producing projects come online in the next two to three years, CPM predicted. Minco's Fuwan mine is a primary silver mine that would have a production capacity of 5.5 million ounces annually.

Continental Minerals' Xietongmen mine could come onstream in 2012 and yield about 1.7 million ounces of silver production annually with 23.7 million ounces of silver reserves.

"Chinese industrial production expanded at a robust pace in 2010," said CPM. "In 2010 China's fabrication demand for silver is estimated to have risen by 10.3% to 153.3 million ounces.

CPM predicts Chinese silver fabrication demand will rise 15.6% to 177.2 million ounces this year.

Despite silver price increases, Chinese consumer demand for jewelry and silverware has been strong, CPM noted. "Silver jewelry demand remained steady because it is comparatively more affordable than gold or platinum jewelry."

"In addition many Chinese consumers are said to prefer the white color of silver jewelry to the yellow color of gold."

CPM estimated 2010 consumption of silver jewelry and silverware was 33.2 million ounces. In 2011, silver jewelry and silverware consumption is forecast to rise 9.6% to 36.4 million ounces.

In their analysis, CPM noted silver use in electronics and electrical appliances account for more than a third of China's total silver use.

"At present China has world-class manufacturing hubs which produce many of the silver-containing electronic components used globally," said CPM. "Chinese manufacturers have been importing silver materials from overseas in order to meet the high level of technical specifications required in certain high-technology applications."

Silver use in electronics in China is estimated to have risen to 59.4 million ounces, CPM said. "In 2011 this is expected to grow 4.9% year-on-year to 63.4 million ounces."

Consumption of silver by China's solar panel manufacturing sector is estimated to have reached 15.4 million ounces in 2010, nearly double that of 2009.

"Chinese solar panel production is expected to continue to grow strongly on expectations of increased domestic and international demand," CPM noted. "A tremendous amount of solar manufacturing capacity is expected to come onstream in China in the next couple of years."

Demand for silver from Chinese fabciration of solar panels is expected to grow further to 28.9 million ounces this year, up 88% year-on-year.

China is also a major global producer and consumer of silver-based brazing alloys. It has some of the world's largest manufacturing facilities for home electronics and electrical appliances, which utilize various type of silver-based solder.

Silver use in brazing alloys and solder is estimated at 30.5 million ounces in 2010. A further demand increase to 33.1 million ounces is forecast for this year, according to CPM.

To order the CPM Silver Yearbook 2011, go to www.cpmgroup.com. The report may be ordered and downloaded online.

Mineweb.com - The world's premier mining and mining investment website Big Russian base metals company looking at Toronto IPO - FAST NEWS | Mineweb

http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=126869&sn=Detail&pid=504

Big Russian base metals company looking at Toronto IPO

Russian oligarch controlled Intergeo, which is said to be worth over $1 billion, is looking at a Toronto IPO.

Author: Pav Jordan and Julie Gordon
Posted: Wednesday , 11 May 2011

TORONTO (REUTERS) -

Intergeo, the Russian copper and nickel company owned by billionaires Mikhail Prokhorov and Maxim Finskiy, hopes to raise from C$100 million ($104.2 million) to C$500 million in a initial public offering on the Toronto Stock Exchange by the end of the year.

Finskiy, the company's chairman and 20 percent stakeholder, told Reuters in an interview on Wednesday the company would float about 10 percent of its shares in the offering.

"We are planning to bring it to a Toronto listing by the end of the fall, by the end of the year," Finskiy said between meetings with investors in Toronto as part of a two-day visit.

He said the company was worth "definitely over C$1 billion, not over C$5 billion."

Prokhorov, who controls 80 percent of Intergeo, is a self-made Russian billionaire and one of the world's richest men.

Prokhorov is the chairman of Russia's largest gold producer, Polyus Gold (PLZL.MM), formed out of the gold-mining assets of Norilsk Nickel (GMKN.MM). He was part owner and chief executive of Norilsk until 2007.

Finskiy, who divides his time between Russia and the United States, said the partners aimed to leverage Prokhorov's U.S. contacts to attract top investors.

"He has a personal relationship with many investors in North America, and he is the owner of the New Jersey Nets, and he is a very recognizable figure in North America, even more than in Europe," said Finskiy. Prokhorov bought the NBA's New Jersey franchise last year.

The company prefers to list in Toronto over New York because the Canadian city has a better understanding of mining and mining finance.

"The New York Stock Exchange has too many different requirements and is not very attractive for companies with just exploration projects or late-stage feasibility projects in their pipeline," Finskiy said.

MULTIBILLION INVESTMENT PLANS

Prokhorov launched Intergeo in 2008 as an exploration company, and announced plans to invest more than $10 billion developing copper, nickel, molybdenum, titanium and precious metals fields.

Finskiy said Intergeo, a subsidiary of Russia's Onexim group private equity fund, which is also owned by Prokhorov, would use cash from the IPO to fund development of its two main projects in Russia: a sulphide nickel deposit and a nickel, copper and platinum group metals deposit.

He described the former property as one of the largest undeveloped sulphide nickel deposits in the world.

Russia is the world's largest producer of nickel and palladium.

The company has already invested $300 million in acquisitions and exploration.

"So those are the two giant projects that are the first priority of Intergeo," said Finskiy. "Intergeo will be a large tier producer of copper, nickel and the PGMs (platinum group metals)."

Intergeo could begin production within four to five years, Finskiy said, adding that he has just hired Canadian mining industry veteran John Lill, former chief executive of FNX Mining, to be the company's CEO.

($1=$0.96 Canadian) (Reporting by Pav Jordan and Julie Gordon; editing by Peter Galloway and Rob Wilson)

Lunchtime Leftovers: Forbes: US will return to the gold standard in 5 y...

Lunchtime Leftovers: Forbes: US will return to the gold standard in 5 y...: "Source: Human Events A return to the gold standard by the United States within the next five years now seems likely, because that move wou..."
http://lunchtime-leftovers.blogspot.com/2011/05/forbes-us-will-return-to-gold-standard.html#more

Forbes: US will return to the gold standard in 5 years

Source: Human Events

A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.

"What seems astonishing today could become conventional wisdom in a short period of time,"Forbes said.

Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds, and discourage reckless federal spending, the media mogul and former presidential candidate said.  The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the country is suffering from now, Forbes added.

If the gold standard had been in place in recent years, the value of the U.S. dollar would not have weakened as it has and excessive federal spending would have been curbed, Forbes told HUMAN EVENTS. The constantly changing value of the U.S. dollar leads to marketplace uncertainty and consequently spurs speculation in commodity investing as a hedge against inflation.

The only probable 2012 U.S. presidential candidate who has championed a return to the gold standard so far is Rep. Ron Paul (R.-Tex.). But the idea "makes too much sense" not to ...
... gain popularity as the U.S. economy struggles to create jobs, recover from a housing bubble induced by the Federal Reserve’s easy-money policies, stop rising gasoline prices, and restore fiscal responsibility to U.S. government's budget, Forbes insisted.

With a stable currency, it is "much harder" for governments to borrow excessively, Forbes said. Without lax Federal Reserve System monetary policies that led to the printing of too much money, the housing bubble would not have been nearly as severe, he added.

"When it comes to exchange rates and monetary policy, people often don't grasp" what is at stake for the economy, Forbes said. By restoring the gold standard, the United States would shift away from "less responsible policies" and toward a stronger dollar and a stronger America, he said. "If the dollar was as good as gold, other countries would want to buy it."

An encouraging sign for Forbes is that key lawmakers besides Rep. Paul are recognizing that the Fed is straying well beyond its intended role of promoting stable prices and full employment with its monetary policies.

Forbes cited Rep. Paul Ryan (R.-Wis.), who, he believes, understands monetary policy better than most lawmakers and has shown a willingness to ask tough but necessary questions.  For example, when Federal Reserve Chairman Ben Bernanke appeared before the House Budget Committee in February, Ryan, who chairs the panel, asked Bernanke bluntly how many jobs the Fed’s quantitative-easing program had helped to create.

Politicians need to "get over" the notion that the Fed can guide the economy with monetary policy. The Fed is like a "bull in a China shop," Forbes said. "It can't help but knock things down."

"People know that something is wrong with the dollar," Forbes concluded. "You cannot trash your money without repercussions."

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