Monthly Metal Review
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
Finland replaced Western Australia as the best address for mining and exploration investment in the annual survey of miners and explorers by Canada’s Fraser Institute. Western Australia fell to fifth place. The top-jurisdictions list also includes Saskatchewan, Nevada, Manitoba, Quebec, Wyoming, Newfoundland/Labrador, Yukon, Alaska, Ireland, Sweden and Chile.
Junior explorers received an investors’ tax break from the Australian Senate. Beginning July 1st, the Exploration Development Incentive will allocate AUD 100 million during the next three years so investors in early-stage exploration projects get breaks for explorers’ early expenditures. They had been considered a loss, and could be claimed only if adequate revenue was generated.
Zambia will temporarily revert to its 2014 mining tax code until a more amicable regime can be reached between the government and mining houses. Previously included in the government budget was a controversial law replacing corporate income tax for mining companies with higher royalties, increasing to 20 percent from 6 percent for open-cast mines and expanding to 8 percent from 6 percent for underground mines.
Copper’s fate this year is likely to hinge on the state of China’s property market and investment in power lines by state-owned State Grid.
Peru’s gold output rose 2 percent on-year in January, to 368,885 ounces from 361,940 ounces. The government said it came on gains by mines operated by Newmont, up 23 percent, and Barrick, up 39 percent. Silver production rose 12 percent to 9.9 million ounces.
Goldman Sachs Group Inc. earned back its place as the largest bank by commodities revenue after JPMorgan Chase & Co. sold its physical raw-materials business.
The U.S. Federal Reserve delayed raising its crucial interest rate, and Fed chief Janet Yellen made clear that months of low rates are ahead. An exports-negative strong dollar complicated tightening, keeping too-low inflation down and clouding economic-growth outlooks. The Fed said business fixed investment is advancing, but called housing-sector recovery slow and export growth weak. Analysts said rates will likely rise gently, even after a midyear or September-or-beyond hike.
The European Central Bank (ECB) predicted 1.5-percent eurozone economic growth this year, 1.9 percent next and 2.1 percent in 2017. ECB President Mario Draghi indicated the economy is recovery bound with help from €1 trillion in ECB QE. As an export-friendly weaker euro dropped closer to dollar parity, the ECB slashed its 2015 inflation forecast to zero and predicted by-2017 inflation at its just-under-2-percent target.
China lowered its growth target from its 7.5-percent goal to 7 percent. The 2014 economy grew by 7.4 percent. Premier Li Kequiang said China will continue reforming state-owned businesses, liberalising banking and financial markets and speeding anti-corruption efforts.