Gold

It is vital for the South African government to step up and take a bigger stake in the mining industry, a top economic advisor told those attending a Mining for Change conference in Johannesburg on Friday. The comments come one week ahead of so-called Economic Freedom Youth Mass Action marches on the Chamber of Mines and stock exchange organized by Julius Malema (pictured), populist leader of the influential youth wing of the ruling African National Congress with the support of the 260,000 member Metalworkers Union. Malema recently told crowds that the nationalization debate within the ANC is a question of how not if, and an August industry-led investigation said the ruling party is closest to seizing mines since the end of white rule in 1994.

Taseko Mines (TSE:TKO) estimates its proposed New Prosperity copper-gold mine would generate $9.8 billion in tax revenues for the federal and BC government over the next 20 years. The Vancouver-based company is taking another run at developing the $1.5-billion project after the federal government rejected it last fall. The gold- copper project in northern British Columbia raised the ire of environmentalists and First Nations groups for the proposed destruction of a lake to be used as a tailings impoundment. A provincial environmental assessment process had approved the project, but the federal government’s own review rejected it last November.

NovaGold (TSE:NG) has struck an agreement with a native group in Alaska respecting its Ambler project. The company said the agreement consolidates Nova Gold's land holdings with those of NANA Regional Corporation Inc. into a 18,000-hectare land package, and provides a framework for exploring and developing the polymetallic deposit.

A dispute between investment banker Euro Pacific Canada Inc. and Midlands Minerals Corp. (CVE:MEX) is drawing in two of the biggest names in the gold investing industry. The Globe and Mail is reporting that Euro Pacific Canada is seeking damages of $10 million from Midlands over a breach of contract — an amount that is actually larger than the tiny explorer's market cap of $7.21 million based on today's counter.

Gold for December delivery had shed $40 or more than 2% by lunchtime coming close to breaching the $1,600/oz level in New York before before regaining some ground to trade at $1,618 an ounce by early afternoon. Traders said the metal is likely to remain a “dead trade” until it can resume its role as a fear barometer and is able to rally in face of equities weakness and that a "solid downtrend" has now been established. Some analysts are saying gold's precipitous $300 drop in September represented a fundamental market shift and that gold's fall despite market volatility and economic uncertainty means the metal has lost its safe haven status and is being treated like any other commodity.

Newmont Mining announced on Wednesday protesters are now allowing access to the Yanacocha gold mine in northern Peru. A local paper reported protesters decided to remove roadblocks following an agreement with the mines ministry and regional authorities. Newmont on Monday was forced to shut down operations at Yanacocha, South America's largest gold mines with annual output of 1.5 million ounces. Newmont and local partner Buenaventura are also advancing a $4.8 billion project to expand the mine which would be the largest investment ever in Peru.

According to a new survey by esure home insurance British distrust of banks and savings accounts has increased to such an extent that more than one in ten in the United Kingdom now own a stash of gold valued above any cash savings. According to the survey, more than 38% of Britons also say investing in gold is better than keeping cash savings. As gold vending machines pop up in shopping malls and physical gold retailers like London-based Bullionvault surpass some central banks in gold holdings, 14% of Britons bought an item of gold as an investment in the past year.

Agnico-Eagle Mines (TSE:AEM) had suspended mining and gold production at its Goldex mine in Val d'Or, Quebec, due to unstable ground and water inflow. "A weak volcanic rock unit in the hanging wall of the Goldex deposit has failed. This rock failure is thought to extend between the top of the deposit and surface. As a result, this structure has allowed ground water to flow into the mine. This water flow has likely contributed to further weakening and movement of the rock mass," Agnico-Eagle said in a statement. As a result of the problem, Agnico said it will write off its investment in Goldex, resulting in a $260 million charge in the third quarter results. The news caused the Toronto-based company's shares to plummet around 19% near the close of trading on Wednesday.

Buffeted by falling copper prices and labour unrest at Grasberg, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) reported net income of $1.1 billion, $1.10 per share, compared with $1.2 billion, $1.24 per share duing the same quarter a year ago. Consolidated copper, gold and molybdenum production in the third quarter were all down compared to a year ago. Freeport sold 947 million pounds of copper, 409 thousand ounces of gold and 19 million pounds of molybdenum, compared with 1.1 billion pounds of copper, 497 thousand ounces of gold and 17 million pounds of molybdenum in the third-quarter of 2010. Regarding Grasberg Mine operations, Freeport said the impact of the eight-day strike in July 2011 and the ongoing strike, which started in September 2011, totaled about 70 million pounds of copper and 100 thousand ounces of gold. The strike has recently turned ugly with reports of sabotage and injuries.