Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Russia’s precious metals and gems repository Gokhran has been buying only gold for its reserves this year, its head Andrey Yurin told reporters in Moscow on Friday.
Purchases of platinum group metals are possible but remain subject to market conditions, Yurin said, adding that no purchases of rough diamonds were planned in 2017.
Russia’s budget allows Gokhran, which is part of the finance ministry, to spend relatively small amounts to add to its reserves each year.
Gokhran was influential on the global platinum group metals markets in the 1990s and 2000s, when palladium stocks it accumulated during the 1970s and 1980s came to the market and depressed prices.
The size of the repository’s reserves are a state secret, but most sector analysts believe that its palladium stocks have been depleted by years of massive sales.
(Reporting by Diana Asonova; Writing by Vladimir Soldatkin and Polina Devitt; Editing by David Goodman)
