xstrata

Morgan Stanley (NYSE:MS) Raises Gold Projection for 2011

As gold prices continue to break records on a weekly basis, projections continue to rise based on a number of factors, and Morgan Stanley (NYSE:MS) has raised its forecast for gold prices in response. Morgan Stanley, “Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets.” At a

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CAT Faces Tax Threat Down Under – Analyst Blog

Caterpillar Inc. ( CAT ), the world’s largest manufacturer of construction and mining equipment, remains concerned regarding the detrimental effect of Australia’s proposed 40% Resources Super Profit Tax (RSPT) on its Australian sales and profits. On May 2, 2010, the Australian government unveiled its new 40% tax rate on mining projects effective July 2012 that sent ripples of dissent through the mining sector. The proposed levy would be imposed on the companies’ returns that exceed the rate on long-term Australian government bonds (currently at 6%). The government, however, will allow mining companies a tax rebate to offset the cost of resource exploration from July 2010. According to the government, the new tax would help all Australians share the benefits of a prolonged mining boom, fueled by demand from China and India, which helped Australia avoid a recession during the global financial crisis. The government plans to use the proceeds from the resource tax to increase the pension fund. It announced an increase in employer-paid pension fund contributions for workers to 12% from the current 9%. The government has pitted itself against Australia’s most important single industry, mining, which accounts for about half of its exports, in a gamble that boosting workers’ pension funds will influence votes. The new tax is expected to hit big miners such as BHP Billiton Ltd. ( BHP ), Rio Tinto ( RTP ) and Switzerland-based Xstrata, and is expected to generate about A$12 billion ($11 billion) in the first two years. The new tax plan was severely opposed by mining companies on the premise that, if implemented, these proposals threaten Australia’s competitiveness and will jeopardize billions of dollars of proposed investment. Xstrata has shelved spending on A$6.6 billion ($5.6 billion) of Australian projects, while BHP Billiton Ltd. and Rio Tinto Group are reviewing projects in Australia and are campaigning against the tax. Fortescue Metals Group Ltd., Australia’s third-largest iron ore producer, has put $15 billion of projects on hold. Over $20 billion in new resource investment in Australia has been put on hold by global miners strongly opposing the tax. The government, however, has stayed put on imposing the tax, saying it would not stall investment. However, Australian Prime Minister Kevin Rudd may announce some changes to his mining tax scheme though he remained firm that the move might not meet the demand of the big miners that the scheme be scrapped entirely and be replaced with a new scheme. Impact of RSPT on Caterpillar Caterpillar boasts of the broadest line of mining equipment in the industry. Its mining equipment sales contributed approximately 28% of Caterpillar’s worldwide machinery sales. The Asia-Pacific region generated 24% of its 2009 sales. Offices in Australia, New Zealand and the South Pacific are covered by dealers with over 60 …

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Glencore Studying $84 Billion Xstrata Merger Telegraph Says

Filed in Gold Investing, xstrata by on May 2, 2010 0 Comments

Glencore International AG is studyinga merger with Xstrata Plc that would create a mining and tradinggroup valued at 55 billion pounds ($84 billion), the SundayTelegraph reported, without saying where it got the information. Advisers are working on Glencore Studying $84 Billion Xstrata Merger Telegraph Says

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Sabina Gold & Silver Signs Term Sheet for Earn in Option on Cook Lake Properties Adjoining the Lalor Gold Deposit in …

Filed in copper, Gold, Gold Holdings, silver, xstrata by on April 26, 2010 0 Comments

VANCOUVER, BRITISH COLUMBIA– – Sabina Gold & Silver Corp. reported today that the Company has signed a Non-Binding Term Sheet with Xstrata Canada Corporation, Xstrata Copper Canada Division for an option to earn up to a 100% interest on the Cook Sabina Gold & Silver Signs Term Sheet for Earn in Option on Cook Lake Properties Adjoining the Lalor Gold Deposit in …

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Sabina Gold & Silver Signs Term Sheet for Earn in Option on Cook Lake Properties Adjoining the Lalor Gold Deposit in …

Filed in copper, Gold, Gold Investing, silver, xstrata by on April 26, 2010 0 Comments

VANCOUVER, BRITISH COLUMBIA– – Sabina Gold & Silver Corp. reported today that the Company has signed a Non-Binding Term Sheet with Xstrata Canada Corporation, Xstrata Copper Canada Division for an option to earn up to a 100% interest on the Cook Sabina Gold & Silver Signs Term Sheet for Earn in Option on Cook Lake Properties Adjoining the Lalor Gold Deposit in …

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Silver and Copper Miners ETF Launches

Two new index-based commodity ETFs have been launched in New York by Global X Funds. Global X, a New York-based provider of Exchange Traded Funds, launched the Global X Silver Miners ETF (NYSE: SIL) and Global X Copper Miners ETF (NYSE: COPX). The Global X Silver Miners ETF is the only ETF in the world that targets silver mining companies. It tracks the Solactive Global Silver Miners Index, comprised of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia. As of March 31, 2010, the largest index components were Fresnillo, Industrias Penoles, Silver Wheaton, and Pan American Silver. The Global X Copper Miners ETF tracks the Solactive Global Copper Miners Index, comprised of the largest and most liquid copper mining companies in the world. COPX components are based in Canada, Australia, UK, US, Mexico, China, Poland, Switzerland, and South Africa. As of March 31, 2010, the largest index components were Freeport-McMoran, Xstrata, Grupo Mexico, and Southern Copper. “SIL and COPX provide investors with efficient and targeted exposure to silver and copper mining companies, respectively. Both metals are essential for the global economy and may see growing demand as the economic recovery continues,” said Bruno del Ama, CEO of Global X Funds. Luke Burgess Editor, Wealth Daily Silver and Copper Miners ETF Launches originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Queensland Mining Corporation (ASE:QMN) Flamingo Resources

Queensland Mining Corporation Estimate Flamingo copper-gold Queensland Mining Corporation (ASE:QMN) announced its estimate of the Flamingo copper-gold resource project. Shares in the company rose as identification of mineralization of a 300 meter long area reinforced company assertions in the past. All resources have been classified as Inferred Resources at the site, and the estimate has been

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PRESS DIGEST – Business Press – March 20

Filed in Gold Investing, xstrata by on March 19, 2010 0 Comments

The Times XSTRATA HEAD’S PAY RISE Xstrata’s chief executive, Mick Davis, received a pay rise of 41 per cent last year, taking his pay to 7.7 million dollars after his bonus was reinstated. Davis was paid a two million dollar short-term bonus last PRESS DIGEST – Business Press – March 20

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Barrick Gold (TSE:ABX) Suing Xstrata

Barrick Gold wants to add Xstrata to LawsuitBarrick Gold is attempting to add Xstrata to a lawsuit over a Chilean mine.The battle is over the attempt by New Gold Inc. to sell the property to Goldcorp. Barrick sued Goldcorp and New Gold where Goldcorp agreed to advance New Gold $463 million to let it buy a 70 percent stake in the El Morro property from Xstrata Plc. Goldcorp also agreed to pay an

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