Global freight rates for bulk commodities such as iron ore, coal and grains are declining due to moves by the Chinese government to slow demand and cool that country’s racy economic growth. China is both the world’s largest consumer and manufacturer of steel.
The JSE Securities Exchange South Africa (JSE) was marginally lower by midday on Tuesday, due to the firmer rand against the United States dollar. The rand was quoted at R6,68 per US dollar from R6,76 when the JSE closed on Friday, while gold was quoted at $396,70 an ounce from $396,70/oz at the JSE’s previous close.
Spot platinum on Monday touched a two-and-a-half month low of $824 an ounce on continued long position liquidation, due to the strong United States dollar. At 12.15pm, platinum was quoted at $829/oz, down $19.50/oz from Friday’s New York close of $848,50/oz. Earlier on Monday, the euro fell to a five-month low of $1,1762.
South Africa’s current 2003/04 commercial maize crop is likely to be 7,305-millions tons, Johan van den Berg from agro-meteorological consultancy Enviro Vision said on Friday. Enviro Vision’s latest estimate for the maize crop is 40 000 tons higher than the consultancy’s previous forecast of 7,265-million tons made in early March.
Despite a marginally firmer rand gold price, South Africa’s three major gold miners are likely to report that earnings remained under pressure during the March 2004 quarter, a survey of seven analysts shows. AngloGold is forecast to report adjusted headline earnings per share of 194 cents, down 15% from the December 2003 quarter.
South Africa’s Chamber of Mines said on Tuesday that it is deeply concerned over media speculation that the proposed new beneficiation law will force mines to add value to their output. Speculative reports are linked to the publication last Friday of the draft Precious Metals and Diamonds General Amendment Bill.
The JSE Securities Exchange South Africa (JSE) was lower by Friday due to the firmer rand against the dollar. The rand was quoted at R6,49 per dollar, from R6,61 when the JSE closed on Thursday, while gold was quoted at $399,50 an ounce, up from $397,90/oz at the JSE’s last close.
Precious-metals consultancy GFMS has forecast that the United States dollar gold price could recover from its current levels of just less than $400 a troy ounce to test $450/oz on global political and economic uncertainties in 2004, GFMS said in a statement on Thursday.
Marginal gold miner Durban Roodepoort Deep (DRD) will continue to pursue its R3,5-million lawsuit against Roger Kebble for breaching a restraint of trade agreement, DRD CEO Ian Murray said in a statement on Wednesday. The legal action was heard in the Johannesburg High Court on Tuesday.
Irish oil company Tullow Oil plc on Friday confirmed that it has made a $500-million bid for South African oil exploration and production company Energy Africa. Tullow Oil has entered into an exclusivity agreement with Engen and other shareholders who in total hold more than 90% of Energy Africa’s issued share capital.
The South African government is reconsidering its proposals for the royalty that will be effective for the gold mining industry, Treasury chief director of tax policy Martin Grote has confirmed. The royalty on gold mining would remain an ad valorem or revenue-based one, he added.
Congested ports in Brazil and Australia are adding to world number one resources group BHP Billiton’s operating costs, executives at BHP Billiton’s carbon steel materials division said in a conference call on Thursday.
World number five gold miner Harmony is increasing the number of women at its local mines and, while progress is relatively slow, the process of integrating women into the mining operations has been quite smooth, Harmony mining executives said on Monday.
Shares in world number one resources group BHP Billiton and rival Anglo American on Tuesday soared to long-term highs on the back of a strong outlook for commodities, driven mainly by demand from China.
The JSE Securities Exchange South Africa (JSE) ticked up during the morning session on Monday, with the key driver of the market being the resources sector. Platinum stocks sparkled on the JSE as the US dollar platinum price forged to fresh 24-year highs.
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/ 25 February 2004
After a flat 2003, global resources group Anglo American (Anglo) is set for a very strong 2004 financial year driven by strong gains in commodity prices and the possibility of a weaker rand, analysts say. Given current commodity prices, Anglo could set record headline earnings per share for the year to December 2004.
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/ 17 February 2004
The JSE Securities Exchange South Africa (JSE) ticked up on bullish sentiment on Tuesday, especially toward the major resources groups such as BHP Billiton and Anglo American (Anglo). At noon, the all-share index was up 0,91%, while industrials and financials were 0,74% and 0,41% firmer respectively.
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/ 12 February 2004
Kumba Resources is missing out on the rapid expansion of demand for iron ore from commodity behemoth China due to South Africa’s rail and port infrastructure not keeping pace, says Kumba CEO Dr Con Fauconnier. As a result, Kumba’s competitors that can more easily raise output are increasing their share of iron ore exports to China.
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/ 11 February 2004
London-listed gold miner Randgold Resources says the $3-million or so it spent on its failed bid for Ghana’s Ashanti Goldfields was well worth it. It was a chance worth taking and we came quite close," said Randgold Resources CEO Dr Mark Bristow.
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/ 11 February 2004
There is likely to be continued competition among the world’s major gold players for the remaining listed quality bullion assets, says world number-four gold miner Gold Fields’s director of international operations John Munro. During the past decade global gold mining has seen consolidation that has left about six major producers/
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/ 11 February 2004
Global resources group Anglo American (Anglo) has embraced black economic empowerment in South Africa, recently appointed Anglo deputy company executive in South Africa Lazarus Zim said an interview. Black empowerment is one of the South African government’s key goals.
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/ 5 February 2004
World number-one rough diamond miner De Beers sees a third consecutive year of earnings growth in 2004 on the back of good global growth, De Beers MD Gary Ralfe said on Thursday. During 2004 De Beers sees a 7% increase in its diamond output, after increasing output by 9% in 2003 from 2002.
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/ 3 February 2004
South African farmer body Grain South Africa (GSA) on Monday reacted sharply to the statements made by the Deputy Director General of Agriculture, Masiphula Mbongwa, regarding efforts by GSA to get producers to cut back grain production in an attempt to increase prices to consumers.
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/ 29 January 2004
South African miner Durban Roodepoort Deep (DRD) is set to continue, together with Harmony Gold Mining, its action against steel group Iscor to secure "fair" steel prices. Earlier this month, the Competition Commission threw out an appeal from DRD and Harmony to investigate Iscor for monopolistic practices in respect of steel pricing.
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/ 29 January 2004
The R4,1-billion deal between Mvela Resources and world number four gold group Gold Fields is likely to be completed within two months or by the end of March, Gold Fields said on Thursday. The transaction will see Mvela take a 15% stake in Gold Fields’ South African operations, which consist of the Beatrix, Driefontein and Kloof gold mines.
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/ 27 January 2004
South Africa’s maize belt is again facing bleak rainfall prospects, due to a tropical low pressure cyclone in the Mozambique channel drawing moisture away from the country, South African Weather Service (Saws) forecaster Evert Scholtz said on Tuesday morning.
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/ 20 January 2004
After poor summer rainfall, a favourable rain-producing weather system is developing, the South African Weather Service said on Tuesday. The key areas that could receive decent rain in the next week are the North West, Gauteng and Free State provinces, with heavy falls possible in places.
South Africa’s Competition Commission has found, following an investigation, no evidence of excessive steel pricing by steel group Iscor, commission spokesperson Karin Coode said on Wednesday. The investigation followed complaints by South African gold miners Harmony Gold and Durban Roodepoort Deep and others.
Spot gold on Tuesday touched a fresh 15-year high of $428,20 an ounce or the highest level since December 1988 due to dollar weakness against the euro, which touched a lifetime best of $1,2739 during the morning.
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/ 12 December 2003
South African paper and pulp group Mondi, wholly owned by Anglo American, on Thursday unveiled the country’s first paper and packaging empowerment deal with MCI Resources, led by Cyril Ramaphosa and James Motlatsi. After the conclusion of the deal, empowerment groupings will have a 10% stake in Mondi South Africa.
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/ 11 December 2003
The dry spell or drought that the South African maize belt has experienced for two weeks is set to extend to four weeks with very little rain forecast in the two weeks from now until Christmas. "The chances of rainfall in the next two weeks are very, very slim," a South African Weather Service forecaster said on Thursday.
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/ 8 December 2003
South Africa maize prices soared on Monday due to the lack of rain and forecasts for little or no rain in the country’s maize belt until Thursday or Friday this week. "Maize is up today on the lack of rain and forecasts for rain for this week. At these price levels, the market is effectively saying that the 2003/04 crop is written off and it is only December!" said a Johannesburg broker.