Monthly Metal Review

Overview

The European economy was unsettled this month by the debt crisis and Greek turmoil, nevertheless there were some positive signs. Germany's business-confidence index, the Ifo Institute survey of execu-tives, was up for the fifth month. Although Germa-ny's economy shrunk 0.2 percent in the last three months of 2011, economists said they expect growth in 2012. European Central Bank president Mario Draghi declared the worst of the eurozone crisis over. In the U.S., the S&P topped the healthy 1400 mark. Equity benchmarks were at multi-months highs, although stocks have drifted. U.S. indicators, includ-ing a rising equities market, pointed up.

The proposed US$90-billion Glencore-Xstrata merger may not slip so easily past regulators. Hard looks from Xstrata shareholders, metals companies, and EU regulators could drag the process out for quite a long time. Some opposition comes from discontented Xstrata shareholders, European steel producers, and others, saying the combination would create an overwhelming power in zinc, nickel and coal.

Martin Kabwelulu, mines minister of the Demo-cratic Republic of Congo, said he intends to change the 10-year-old mining code, increasing miners' tax rates and raising the government's now-5-percent-minimum automatic stake in mining projects. He said the code would insist on more domestic processing of raw materials and more domestic manufacturing. Kabwelulu said DRC raised around US$100M in mining taxes last year.

Colombia will award 2013 mining concessions under a new bidding process and give a maximum of 20 percent of an area set aside for mineral develop-ment. Criteria will include proposed exploration spending and how much a company offers to pay in revenue sharing. Foreign direct investment in Co-lumbia more than doubled in 2011 to $14.4 billion.

Indonesia, one of South East Asia's largest econ-omies, will place a 49 percent curb on foreign own-ership of mines. The new rules will require foreign companies to increase Indonesian ownership to a minimum of 51 percent by the first decade of pro-duction. Indonesia is the top exporter of tin and thermal coal and has rich deposits of gold and cop-per. Freeport McMoRan's Grasberg is the world’s largest gold mine and second-biggest copper mine. Freeport owns some 90 percent and has an existing contract, as do other major miners. Others include U.S.'s Newmont and International Nickel Indonesia, part of Brazilian Vale. SA. France’s Eramet operates a nickel project with Japan's Mitsubishi. It is unclear when the new regulation would apply to existing investors.

Canada is to end production of the penny this fall. Finance Minister James Flaherty said it costs 1.5 pennies to make each one-cent coin. The government reports the cost of producing the penny has risen to C$11-million yearly. A 2012 Canadian penny is 94 percent steel, 1.5 percent nickel and 4.5 percent copper as plating.

Philippines President Benigno Aquino stated the government may ask for 50 percent of all mining revenues to ensure it gets a fair share from the mining industry. Mining policies are being revised and Aquino said Manila, with a US$1-trillion resource base, will probably require miners to pay what he called hefty percentages of revenues. The excise tax is now 2 percent.

Daily Prices

March 2012

Copper
Date(Fix.) ($/MT)
Average 8457.05
30-03-2012 8480
29-03-2012 8360
28-03-2012 8480.5
27-03-2012 8512
26-03-2012 8485
23-03-2012 8400.5
22-03-2012 8320
21-03-2012 8470.5
20-03-2012 8437
19-03-2012 8575
16-03-2012 8620.5
15-03-2012 8490.5
14-03-2012 8468
13-03-2012 8530
12-03-2012 8401.5
09-03-2012 8390.5
08-03-2012 8390
07-03-2012 8261
06-03-2012 8335.5
05-03-2012 8502
02-03-2012 8575
01-03-2012 8570
Silver
Date(Fix.) ($/OZ)
Average 32.95
30-03-2012 32.43
29-03-2012 31.79
28-03-2012 32.43
27-03-2012 33.01
26-03-2012 32.23
23-03-2012 31.54
22-03-2012 31.79
21-03-2012 31.97
20-03-2012 32.22
19-03-2012 32.44
16-03-2012 32.27
15-03-2012 32.36
14-03-2012 32.84
13-03-2012 33.58
12-03-2012 33.77
09-03-2012 33.87
08-03-2012 34.09
07-03-2012 33.17
06-03-2012 33.22
05-03-2012 34.18
02-03-2012 35.21
01-03-2012 34.56
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1675.06
30-03-2012 1660.75
29-03-2012 1655.75
28-03-2012 1677
27-03-2012 1694
26-03-2012 1658
23-03-2012 1651
22-03-2012 1636
21-03-2012 1656
20-03-2012 1648.5
19-03-2012 1654
16-03-2012 1649
15-03-2012 1646.75
14-03-2012 1662
13-03-2012 1694.75
12-03-2012 1705.25
09-03-2012 1699.5
08-03-2012 1701.5
07-03-2012 1682.5
06-03-2012 1685.5
05-03-2012 1698
02-03-2012 1714.5
01-03-2012 1721
Date(Fix.) ($/OZ)
Average 1674.41
30-03-2012 1661.625
29-03-2012 1656.625
28-03-2012 1676.5
27-03-2012 1693
26-03-2012 1669.125
23-03-2012 1657.5
22-03-2012 1635.75
21-03-2012 1652.625
20-03-2012 1652.625
19-03-2012 1657.75
16-03-2012 1653.5
15-03-2012 1647.375
14-03-2012 1653.125
13-03-2012 1692.375
12-03-2012 1701.375
09-03-2012 1693.5
08-03-2012 1695.75
07-03-2012 1680
06-03-2012 1677.25
05-03-2012 1701.5
02-03-2012 1710.75
01-03-2012 1717.5
Date(Fix.) ($/OZ)
Average 1673.77
30-03-2012 1662.5
29-03-2012 1657.5
28-03-2012 1676
27-03-2012 1692
26-03-2012 1680.25
23-03-2012 1664
22-03-2012 1635.5
21-03-2012 1649.25
20-03-2012 1656.75
19-03-2012 1661.5
16-03-2012 1658
15-03-2012 1648
14-03-2012 1644.25
13-03-2012 1690
12-03-2012 1697.5
09-03-2012 1687.5
08-03-2012 1690
07-03-2012 1677.5
06-03-2012 1669
05-03-2012 1705
02-03-2012 1707
01-03-2012 1714
Lead
Date(Fix.) ($/MT)
Average 2061.45
30-03-2012 2020.5
29-03-2012 1989
28-03-2012 1987
27-03-2012 1998
26-03-2012 1982
23-03-2012 1995
22-03-2012 2000
21-03-2012 2026
20-03-2012 2042.5
19-03-2012 2095
16-03-2012 2107
15-03-2012 2095.5
14-03-2012 2108
13-03-2012 2122
12-03-2012 2085.5
09-03-2012 2090.5
08-03-2012 2087
07-03-2012 2040
06-03-2012 2068.5
05-03-2012 2122.5
02-03-2012 2135
01-03-2012 2155.5
Zinc
Date(Fix.) ($/MT)
Average 2034.55
30-03-2012 2003
29-03-2012 1987
28-03-2012 2007
27-03-2012 2014.5
26-03-2012 1990
23-03-2012 2000
22-03-2012 2004
21-03-2012 2026
20-03-2012 2030.5
19-03-2012 2075
16-03-2012 2084
15-03-2012 2077
14-03-2012 2073.5
13-03-2012 2079.5
12-03-2012 2027.5
09-03-2012 2027.5
08-03-2012 2019
07-03-2012 1987
06-03-2012 2008
05-03-2012 2068
02-03-2012 2088.5
01-03-2012 2083.5
Tin
Date(Fix.) ($/MT)
Average 23016.14
30-03-2012 23200
29-03-2012 22350
28-03-2012 22450
27-03-2012 22475
26-03-2012 22375
23-03-2012 22350
22-03-2012 22325
21-03-2012 23305
20-03-2012 23170
19-03-2012 23625
16-03-2012 23800
15-03-2012 23530
14-03-2012 23900
13-03-2012 23450
12-03-2012 22905
09-03-2012 22660
08-03-2012 22900
07-03-2012 22450
06-03-2012 22700
05-03-2012 22905
02-03-2012 23650
01-03-2012 23880
Nickel
Date(Fix.) ($/MT)
Average 18709.55
30-03-2012 17430
29-03-2012 17405
28-03-2012 17720
27-03-2012 18030
26-03-2012 18190
23-03-2012 18305
22-03-2012 18470
21-03-2012 18880
20-03-2012 18770
19-03-2012 18755
16-03-2012 19200
15-03-2012 19195
14-03-2012 19350
13-03-2012 19250
12-03-2012 19000
09-03-2012 18750
08-03-2012 19000
07-03-2012 18775
06-03-2012 18700
05-03-2012 19300
02-03-2012 19390
01-03-2012 19745
Cobalt
Date(Fix.) ($/MT)
Average 31143.18
30-03-2012 31000
29-03-2012 31500
28-03-2012 31000
27-03-2012 30500
26-03-2012 31000
23-03-2012 31000
22-03-2012 31000
21-03-2012 30500
20-03-2012 30500
19-03-2012 31800
16-03-2012 31250
15-03-2012 32000
14-03-2012 31500
13-03-2012 31500
12-03-2012 32300
09-03-2012 32200
08-03-2012 30500
07-03-2012 31500
06-03-2012 31850
05-03-2012 29750
02-03-2012 30000
01-03-2012 31000