Global gold demand fell in the third quarter, particularly in China where growth is seen to be slowing and inflation waning, according to a World Gold Council report.  The sovereign wealth fund Qatar Holding, the second-largest shareholder in Xstrata after Glencore, said it would support Glencore’s proposed $32 billion takeover of Xstrata less than a week before Xstrata’s shareholders will vote on the deal. The illegal strikes at South African mines that led to the deaths of more than 50 people ended when workers accepted a deal from Anglo American Platinum, the world’s biggest platinum producer; however, uncertainty in the industry continues as an Anglo review of Amplats is expected to result in shaft closures and job cuts.

Yesterday’s top stories were:

“3 arrested in connection mining museum heist” by the Associated Press; “Iron ore at 4-month high as cold snap shuts Chinese mines” by Mineweb; and “Why Copper Is a Critical Metal: Mickey Fulp” by Resource Investor.

Quote of the Day:

“We’re bumping along at the bottom. The key is getting people to buy houses and the key to that is people having jobs.”

– Frank Bilban, vice president-finance at producer Encore Wire, at the American Copper Council meeting, in “US copper wire industry in ‘depression:’ industry official” from Platts.

 

Observations – Statistics – Commentary

Restoring Customer Confidence

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Regulatory Changes: A Pretty Picture For Gross Margining MarketsWiki.tv The Dodd-Frank Act has addressed numerous risks in the financial markets. Ron Filler, a Professor at New York Law School, says one provision, called gross margining, could alleviate segregated customer account risk, starting in January 2013. Watch the video » +++++ About the Restoring Customer Confidence video series In the aftermath of the MF Global collapse, fraud at Peregrine Financial Group and high profile high-frequency trading shocks, John Lothian News asks – how do you restore customer confidence and bring traders back? The Restoring Customer Confidence video series answers that question by exploring potential solutions using expert interviews and simple animations. John Lothian News interviewed more than a dozen professionals in the industry to get their ideas and solutions. As these ideas become practice, or as new concepts are adopted by the industry, we will continue to add them to the site. Visit the video series page on MarketsWiki.tv over the next several weeks for new ideas and solutions.

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South Africa strikers accept Amplats offer: labour leader
Reuters
The last of a crippling wave of illegal strikes that have swept South Africa’s mining sector ended on Thursday after workers accepted an offer from Anglo American Platinum , the world’s top producer of the precious metal.
jlne.ws/SOF4WM
***Unfortunately, “the future is riven with uncertainty” as Anglo scrutinizes Amplats in a review that is expected to lead to shaft closures and job cuts.

Analysis: South African mining grapples with decline of union NUM
Reuters
In the last three months, it has become a common scene in South Africa: wildcat strikers facing off with police in the shanty towns that ring its platinum mines, leaving the dusty streets strewn with rocks, burning tires and shot-gun cartridges.
jlne.ws/SOF4X1

Big gold companies need to get their act together – Ecclestone
Geoff Candy – MINEWEB
New gold production is likely to increasingly come from the junior and mid-tier space over the medium term, says Hallgarten & Co’s Chris Ecclestone, because cost bloat is rapidly pricing the majors out of the market.
jlne.ws/SOF3lH

India still the world’s biggest gold market
Shivom Seth – MINEWEB
India has toppled China to emerge as the largest gold consumer in the third quarter of 2012. Though global gold demand fell in the Q3 with investors buying fewer bars and coins, India’s gold demand revived in the June-September quarter 2012.
jlne.ws/SOF3lK

Singapore Rising Star for Gold Investment
Resource Investor
Switzerland is a traditional investment safe-haven, however in a recent survey we found that when it comes to gold bullion storage there is a new star emerging and customers want to be a part of it.
jlne.ws/SOF5du

Iron Ore Industry to Remain Turbulent Through to 2020
With the disruption of supplies from India, concerns over slowing economic growth in China, and the effects of large stockpiles forcing the price of iron ore through a series of supposed “price floors”, the iron ore industry has faced a turbulent time during 2011 and 2012.
jlne.ws/SOF5dA

High gold prices push many Indians to silver for Diwali
Shivom Seth – MINEWEB
It is not just gold that caught the eye of Indian consumers celebrating Diwali. Brisk business in silver was also seen in select parts of the country.
jlne.ws/SOF3lZ

Lead Stories

World gold demand slips 11 percent in 3Q
Boston Globe
Global gold demand fell in the third quarter as investors bought fewer bars and coins and buyers in China held back because of an economic slowdown, an industry group said Thursday.
jlne.ws/SOF5u6
***Demand rebounded 8 percent to 223.1 tons in India, however, as buying resumed after falling due to strikes by jewelers, fewer auspicious marriage days, and a new import duty in the first half of the year.

Gold loses lustre for Chinese investors
Jack Farchy in London and Josh Noble in Hong Kong – FT.com
Chinese demand for gold fell at the fastest rate in nearly a decade in the third quarter as the country’s investors stepped back from the precious metal amid slowing growth and waning inflation.
jlne.ws/SOF3Cg
*** “The data exclude buying by the Chinese central bank, which many analysts and bankers believe has been a significant factor in the market over the past year.”

Qatar Wealth Fund Backs Glencore’s Bid for Xstrata
MARK SCOTT – NYTimes.com
LONDON – The sovereign wealth fund Qatar Holding said on Thursday that it would support Glencore’s proposed $32 billion takeover of the mining company Xstrata.
jlne.ws/SOF5u7

Talvivaara Brings Back Pera as CEO Amid Production Decline, Leak
Bloomberg
Talvivaara Mining Co. , the Finnish nickel miner struggling to meet production targets and stem environmental contamination, brought back its founder as chief executive officer until operations are “stabilized.”
jlne.ws/SOF5Kq

Four arrested in hijacking of gold and gems from Mariposa museum
Diana Marcum, Los Angeles Times
Four men suspected in the heist of more than $1 million in gold and gems from the California State Mining and Minerals Museum in Mariposa have been arrested, investigators said, adding that more arrests were possible.
jlne.ws/SOF5Kt

Leon rails against misunderstood mining charter
miningmx.com
SOUTH Africa’s mining sector had placed too much emphasis on transformation of ownership to the detriment of other features of the mining charter such as procurement, and human resource management.
jlne.ws/SOF5Kz

Finnish minister criticizes Talvivaara board chairman
Reuters
A Finnish government official has criticized the founder of mining company Talvivaara, whose nickel mine has caused major environmental damage in Eastern Finland, for not taking a greater role in the crisis.
jlne.ws/SOF3SM

Futures & ETF News

Gold paralyzed by fiscal uncertainty
http://jlne.ws/PWrxQ7

US commodity inflows fall in Oct; gold stays strong
Reuters
The monthly money flow into U.S. commodity products and funds fell by a fifth in October as investors veered off risk on fears over slowing global growth, but interest in gold funds remained strong, data from funds tracker Lipper showed on Wednesday.
jlne.ws/SOF60T

Palladium ETF Bolstered on Largest Shortage in a Decade
ETF Trends via Yahoo! Finance
It could be time for the palladium exchange traded fund to shine as mine strikes, safety stoppages and supply cuts create the biggest palladium shortage in over a decade.Labor disputes in South Africa …
jlne.ws/SOF3SV

Analysts express mixed views on platinum sector
Business Day
PLATINUM prices have rebounded to nearly $1,600/oz in the last couple of days, but analysts warned it was still not the right time to invest in the South African platinum sector.
jlne.ws/SOF610

Randgold Falls in London as Ivory Coast Government Is Dissolved
Thomas Biesheuvel – Bloomberg
Randgold Resources Ltd. (RRS), a producer of the precious metal in West Africa, dropped to the lowest level in two months in London trading after the president of Ivory Coast dissolved the country’s government.
jlne.ws/SOF49e

Commodities & Macroeconomics

US copper wire industry in ‘depression:’ industry official
Platts
The US construction industry — the lifeblood of sellers of copper wire used in building — is not in recession, but in a “depression,” a top copper wire industry official said Wednesday.
http://jlne.ws/RF41FF

Company & Production News

Shabangu says SA mineral resources valued at R29.6tr
miningweekly.com
Mineral Resources Minister Susan Shabangu said that the value of South Africa’s mineral resources was estimated at R29.6-trillion.
jlne.ws/SOF617

ArcelorMittal to quit controversial Kalagadi stake
miningmx.com
ARCELORMITTAL is to sell its 50% stake in Kalagadi Manganese, a company that became mired in controversy earlier this year following alleged corporate governance abuses.
jlne.ws/SOF49j

Goldcorp Confident Chile Authorities Will Approve El Morro Project
Dow Jones
SANTIAGO, Chile–Goldcorp Inc. is confident Chilean authorities will approve the permits for its stalled El Morro copper and gold project in the near future, Chief Executive Chuck Jeannes said Wednesday.
jlne.ws/SOF49k

Gold Fields says Peru openpit JV project not feasible
miningweekly.com
JSE- and NYSE-listed Gold Fields said more work was needed on the Chucapaca exploration project, which it is developing with joint venture (JV) partner Buenaventura, after a feasibility study found a 30 000 t/d openpit design unfeasible.
jlne.ws/SOF6hv

Iamgold To Focus On Owner-Operator Model: CEO
Forbes
Iamgold Corp. will continue to focus on an owner-operator model as a company executive pointed to the success it has given the mid-tier gold producer during the year in a conference call Wednesday.
jlne.ws/SOF49p

AuRico Gold Reports Fatalities at El Chanate Mine
jlne.ws/SOF6hD

New Gold Announces Closing of $500 Million Senior Notes Offering
jlne.ws/SOF49s

B2Gold Reports Record Third Quarter 2012 Financial Results
Marketwire via Yahoo! Finance
B2Gold Corp. reports its results from its operations for the third quarter ended September 30, 2012. All dollar figures are in United States dollars unless otherwise indicated.
jlne.ws/SOF6hF