Brazil Discards Iron export Tax Following Vale Talks
Brazil has scrapped a proposal to enforce an iron export tax after mining company Vale decided to increase investments in Brazil under pressure from the government.
The government, however, is still contemplating a hike in mining royalties that is being opposed by the industry because it would affect investment in the sector.
The Brazilian iron ore producer decided to increase its investments in 2010 to $12.9bn, a 30percen hike, following an announcement to invest $5.6bn in the state of Minas Gerais by 2015, according to Mining Weekly Online. Read more
Brazil’s Vale to up 2010 investments to $12,9billion next year
Brazilian miner Vale said on Monday it will hike 2010 investment by 43 percent over 2009 after months of harsh criticism from President Luiz Inacio Lula da Silva for not doing enough to strengthen Brazil’s economy.
Vale, the world’s largest iron ore producer, said it would invest $12,9 billion next year, up from an expected $9 billion in 2009, Vale CE Roger Agnelli said after a meeting with Lula. Read more
The influence of mining on GDP has declined, particularly as gold reserves become exhausted
South African mines will not be nationalised despite “noises” from some politicians, South Africa’s central bank Governor Tito Mboweni said on Saturday.
However, he warned in a memorial lecture that authorities in emerging countries must guard against excessive foreign ownership of banks.
Some politicians, including those from influential trade unions and the ruling ANC party’s youth, have repeatedly called for government to take over ownership of the country’s mines, a move that could scare off investors. Read more
Sentula Mining’s plan to sell Koornfontein for R686m, shares up 20%
Sentula’s share price had traded higher by more than 20percen, compared with Friday’s close, in early morning trade, before dropping back slightly.Sentula Mining’s share price rose sharply in early morning trade on Monday, after the company announced plans to sell its 49,9percen stake in the Koornfontein coal mine, in Mpumalanga, for R686-million in cash, as part of a recapitalisation process.The revised agreement was signed earlier in October, with an added condition that R400-million be repaid by the end of November or Sentula would incur significant penalties.Apart from the normal regulatory conditions, the parties have agreed to make the transaction conditional upon the conclusion of a due diligence by October 30, at the latest, failing which, Sentula would undertake the previously proposed rights offer. Read more
Chinese appetite for gold increasing
Investors in China are increasingly looking to gold bullion in spite of the high price of the precious metal.
This is according to Reuters, which says that investors are viewing gold positively as a result of expectations of higher gold consumption in the country.
“In terms of investment, purchases are rising, as more people are using gold as a hedging tool. Such purchases will obviously increase in China,” said Zoe Wang, analyst at Shanghai CIFCO Futures. Read more
Thunderbird Resorts Inc.: Follow Up to Beneficial Press Release of 5 October 2009
PANAMA, REPUBLIC OF PANAMA-Thunderbird Resorts Inc. reports the following: On 8 September 2009, Thunderbird Resorts Inc. reported it received a copy of an unsolicited letter from Beneficial Holdings, Inc. dated 1 September 2009. The BHI Letter purported to be an offer to purchase a majority of Thunderbird’s outstanding shares of common stock.Despite BHI stating in press releases dated 10 September 2009 and 16 September 2009 that it was “moving forward to begin discussions with TBIRD” and that “it fully intends to engage TBIRD with an attempt at mutually beneficial discussions”, since the 8 September 2009 BHI Letter, Thunderbird has not received any additional communication from BHI and never received any information establishing either the credibility of the offer or BHI’s compliance with applicable laws. Read more
