18 Jul 08 at 12:38 : Gold $ =  961.95 ● Plat $ =  1 877.00 ● ZAR/USD = 7.58 ● ZAR/Euro =  12.03 ● Brent Crude $ = 133.37
Copyright © 2008 Mining Bulletin Online. All rights reserved.
Revised: 07/18/08.

 

 

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Aluminium is set to outshine platinum and gold in 2009

18 Jul 2008

Fortis Bank in London released a comprehensive study of price forecast for various metals. The study looks at range of factors affecting the metal prices and then seeks to forecast the price over period of a year with the base being the closing prices in June 2008. The study forecasts that price of aluminium will be 12.1% higher in June 2009 compared to June 2008. Platinum is expected to trade at US$2 200 in June 2009, 6.6% higher than the June 2008 price of US$2 064. According to Fortis Bank, aluminium price will be driven by anticipated curtailment in production capacities due to global energy concerns especially in China. Demand for platinum on the other hand will be driven by higher demand for diesel in Europe and Korea. Platinum is used in cleaning exhausts of diesel engines. Fortis Bank forecast gold to trade at US$900 per ounce in June 2009 compared to US$930 in June 2008.

 

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Eskom will burn 140mt of coal in 2009

18 Jul 2008

Demand for energy in South Africa forced Eskom to increase its coal consumption from 119 million tons in 2007 to 125 million tons in 2008, portion thereof was procured from costly short term contracts. But this was not enough to meet the demand and Eskom had to generate additional power from its expensive open-cycle gas turbines. This resulted in steep increase in diesel consumption from 11.3 million litres in 2007 to 346 million litres in 2008. The consequences of increased operating costs were a drop in nett profit from R6.5-billion in 2007 to R974 million in 2008. In 2009 Eskom is set to consume 140 million tons of coal and this will reduced its diesel costs. Recently Ras Myburgh was seconded from Kumba Resources and will look into Eskomís security of supply including the possibility of the state utility operating its coal mines.

 

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Is oil price driven by speculators?

18 Jul 2008

There has been a call that the recent high price of oil is driven by speculation. The oil price has doubled in 12 months. OPEC blames speculators and weak US dollar for persistent high prices. George Soros, American billionaire and fund manager, agrees with OPEC and specifically fingers investment institutions such as pension funds for pumping money into indexes that track the price of brend crude oil. In his support Tony Twine of Econometrix points out that speculation was taking place in future markets which in turn influences spot markets. But others disagree saying that inventory levels globally have remained relatively constant and there is no evidence of hoarding oil. Nonetheless consumption patterns indicate that oil demand is rising in Asia and Middle East. While these arguments are thrown around, we will have to wait and see if the bubble will burst, like it always does in financial markets.

 

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