Record $93B private capital flows into natural resources

A new European study says supply shortfalls of rare-earth elements over the next two decades put at risk the EU's ambitious plans to expand the production of solar, wind and green transport technologies and implement carbon-capture systems. According to the EU's Joint Research Centre, solar will require half the current world supply of tellurium and 25% of the supply of indium, while Europe’s wind energy programme which is supposed to power all of the continents 240 million households within 20 years need a steady supply of neodymium and dysprosium. China controls 95% of the globe's rare earth output in 2010 produced more solar panels than the rest of the world combined.

Shares in Jaguar Mining (NYSE:JAG) surged 46% today on news that a Chinese gold producer is bidding $1 billion for the Brazil-focused company. The Globe and Mail reports that Shandong Gold is offering $9.30 per share in cash, which is a 73% premium to Jaguar's closing price Tuesday on the NYSE. The shares were changing hands at around $7.89 Wednesday afternoon in New York.

Popular commentator and finance professor, Larry Lang, didn't want anyone to hear his real thoughts about China's economy, but his Oct. 22 speech in Shenyang City is making the rounds.

A Chinese mine manager who smeared coal on his face to appear to be trapped in a mine where 34 workers died has been detained by police, MailOnline reported: "After the accident, Qi (Guming) 'rushed down the shaft and smeared coal on his face to pretend he had escaped from underground,' the newspaper said. 'On Sunday the public security authority confirmed that Qi did not go down the shaft on that day, and made false claims to the rescue command office.'"

The price of iron ore spiked to a one-month high today, with benchmark Australian iron ore rising to $140 a tonne. FT (sub required) reports that Chinese steelmakers, which halted purchases last month amid concerns about an economic slowdown and tight credit conditions, are able to obtain import financing. That, combined with higher steel prices, is boosting iron ore prices.

Construction and mining equipment manufacturer Caterpillar, Inc. (CAT: News ) said Thursday it will offer to acquire Chinese equipment maker ERA Mining Machinery Ltd. for about 6.9 billion billion Hong Kong dollars or $887 million in order to expand market share and modernize its operations in China, where mine modernization will continue to drive demand for equipment.

The Chinese General Administration of Customs reported that the country's iron ore and concentrates imports were 49.94 million tonnes in October, down 17.5% from 60.57 million tonnes in September 2011. The spot price for iron ore arriving at China’s Tianjin port increased to $134.40 a tonne last week from $116.90, the lowest in almost two years, on Oct. 28. Most analysts believe do not expect prices to return to the historic highs above $180 seen just two months ago thanks to the volume-driven market strategy of the big three producers and China's plans to increase its domestic supply by 40% over the next four years and up its investment in mines abroad.

Xinhua reports the chief of China's work safety watchdog on Saturday decried the poor safety standards at a coal mine where rescuers had pulled out 30 bodies and are still searching for 13 others following a gas outburst three days ago. Director of the State Administration of Work Safety Luo Lin, who led a investigation of the Sizhuang Coal Mine, located in the county of Shizong in southwestern Yunnan province, described the mine's safety measures as "very poor." The mine was found to be operating illegally, having had its license revoked a year ago, according to a statement from the provincial coal safety supervision bureau. Latest official data shows that more than 2,600 people died in mining accidents in 2009.

According to a new report by MarketWatch, gold's allure is shifting to a new generation. Many people in their 20s and 30s have little faith in equities and, unlike older investors, are more inclined to consider alternative investments. Others seek tangible, hard assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 US financial crisis. And these new investors are not just gold hoarders of the doomsday variety.