Gold & Precious Metals

Talks between a South African miners, government and platinum mining companies are underway in Johannesburg to end a crippling strike that entered its second day on Friday.
Close to 100 000 members of the Association of Mineworkers and Construction Union (Amcu) at some of the world’s biggest platinum mines, Impala, Lonmin and Anglo American went on strike this week demanding a salary increase.
The militant union is demanding an entry level salary of 12 500 rand.
But mining companies argue the demands are too excessive and would cripple their operations.
The government fears the strike would further damage South Africa’s reputation as an attractive business and investment destination.
Lonmin said they were losing close to four and half million dollars a day due to the strike.
Implants told a local radio station that it was struggling financially. spokesman Johan Theron told the SABC:
“Business is struggling quite clearly. Most [platinum] mines in South Africa are not making any money,” Implats spokesman Johan Theron told the South African Broadcasting Corporation.
“If you look at Impala, our wage bill is R7 billion, so a 10-odd percent increase is an extra R700m which simply we don’t have.”
He said the company was trying to discuss with the unions involved in the platinum sector strike on how to help them improve profitability.
But AMCU said it was not prepared to compromise because its members work in dangerous environments and are paid a pittance.
Meanwhile, reports from police said violence has once again reared its ugly head.
“We have started to receive reports of roads barricading and other incidents that are in contravention of the law,” said the police’s Thulani Ngubane in a statement.
“This is happening despite the request by police as well as Amcu days prior and on the first day of the strike that all those who are on strike must respect the rule of law including the rights of those who are not on strike…”
Police said they are urging the union’s leadership to “take control of their members on the ground” so that the police can continue, “to do their work in providing safety to lives and properties.”
(Kitco News) – Gold prices enjoyed a late-week surge as concerns about the global economy reinvigorated flight-to-quality buying, building on the recent short-term higher trend seen in the metal.
If those concerns spill into next week, gold may continue its ascent, particularly as technical charts show support, but market participants said traders should stand on guard in case profit-taking occurs following Wednesday’s Federal Open Market Committee meeting.
February gold futures rose Friday, settling at $1,264.30 an ounce on the Comex division of the New York Mercantile Exchange, up 1% on the week. March silver fell Friday, settling at $19.765 an ounce, down 2.7% on the week.
In the Kitco News Gold Survey, out of 33 participants, 22 responded this week. Thirteen see prices up, while five see prices down and four see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
….more analysis HERE
OTTAWA (Reuters) – North American regulators should phase out the type of rail car involved in last July’s deadly Lac-Megantic crash “sooner rather than later,” Canadian investigators said on Thursday, urging the United States and Canada to impose tougher standards swiftly.
Canada’s Transportation Safety Board (TSB) and the U.S. National Transportation Safety Board (NTSB) issued three recommendations each, adding pressure on regulators to improve safety on the tracks after a series of oil-by-rail accidents in recent months.
Neither the TSB nor the NTSB have the power to impose regulations, which only the U.S. and Canadian governments can put in place.
“A long and gradual phase-out of older cars simply isn’t good enough,” TSB Chairwoman Wendy Tadros said at an Ottawa news conference. “The period in which that phase-out happens is something we’re going to leave to regulators, but we’re saying this should be happening sooner rather than later.”
Government officials in both countries said on Thursday they viewed the recommendations as a matter of urgency.
The oil that exploded in the Lac-Megantic, Quebec, derailment, which caused an explosion and fire that killed 47 people, was carried in DOT-111 tanker cars that pre-dated tougher new safety standards for that type of car that were introduced in October 2011.
While DOT-111 cars built since 2011 comply with new requirements, tens of thousands of older ones remain in service, and shipping oil by rail has grown exponentially as the industry discovers and extracts crude deposits in areas such as the Bakken region of North Dakota, where pipelines are scarce.
“The large-scale shipment of crude oil by rail simply didn’t exist 10 years ago, and our safety regulations need to catch up with this new reality,” said NTSB Chairwoman Deborah Hersman. “While this energy boom is good for business, the people and the environment along rail corridors must be protected from harm.”
….read page 2 HERE




