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.
Bolivian lawmakers are debating a bill that would allow the country’s central bank to boost its gold reserves via purchases from bullion produced in the country.
The proposal aims to clamp down on illegally mined and traded gold by authorizing the bank to offer international prices for legally produced metal, according to a copy of the draft bill.
Bolivian producers would be required to offer all of their gold to the central bank in return for tax breaks. Once the bank’s annual buying limits are met, producers and traders would be certified to sell abroad.
The bill will allow a greater portion of foreign reserves to be held in gold. Prices of the metal have rebounded in the past three months as global stimulus stokes inflation concerns.
It will also allow the central bank to carry out operations such as offshore sales and via instruments such as swaps, options, futures and forwards and loans backed by the metal.
(By Sergio Mendoza, with assistance from Matthew Bristow)
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