On 31 December 2014 the Chinese Ministry of Commerce announced details of its plan to replace the controversial quota system regulating the export of rare earths with a new resources tax. In August 2014, the World Trade Organisation (WTO) found the quota system to be inconsistent with China’s WTO obligations. In 2009 Beijing imposed restrictions on the exportation of seventeen rare earth minerals crucial to the manufacture of a wide range of high tech devices, from smart phones to electric cars. In March 2012 the U.S. backed by Brazil, Canada, Japan, Argentina, Russia, Australia, and all members of the European Union among other countries, issued a formal complaint to the WTO about the quota system. It is estimated that China is responsible for approximately 93% of global rare earth production. Under the proposed new guidelines, China-based rare earth producers will still be required to obtain an export licence but will no longer have their international sales capped.

(Source: http://www.mining.com/china-scraps-decade-old-rare-earths-export-quotas-44322/ ; 6 January 201)

BitGold gold-exchange raises US$3.5 million in financing

In a recent round of financing Toronto-based BitGold Inc. (BitGold), a gold exchange company that facilitates bitcoin transactions, has successfully raised approximately US$3.5 million. Investors include PortVesta Holdings, Soros Brothers Investments LLC, PowerOne Capital Markets Ltd, and Sandstorm Gold Ltd. BitGold allows exchange members to buy, sell and pay for the storage of gold using bitcoins. The company utilises ‘blockchain’ technology, which allows for the “decentralized record confirmation and global value transfer.” According to BitGold CEO Roy Sebag, the flexibility of BitGold’s platform “allows gold to be a core savings account coupled with digital currency for seamless global payments, or as a natural-world storage and safety valve for an inevitable internet of money.” Conventional gold-exchanges require gold to be safely vaulted and stored, making it extremely difficult to spend, especially in micro-transactions. BitGold believes they have solved this problem by developing a platform that is part gold exchange, part payments technology and part custodian, resulting in a powerful user experience that advances gold from a physical element to an instantly accessible unit of account and store of value for the internet, an operating system for gold.”

(Source: http://www.mining.com/bitgold-raises-3-5-million-from-soros-brothers-sandstorm-gold-89051/ ; 5 January 2015)

Caterpillar stock falls following downgrade by JPMorgan

Shares of Caterpillar Inc. (Caterpillar), the world’s largest maker of mining and construction equipment, fell almost 6% in the aftermath of a downgrade by JPMorgan on Monday 5 January 2015. JPMorgan cited concerns about Caterpillar’s direct exposure to the global oil and gas industry, indirect exposure to mining, U.S. construction and emerging markets as a reason for the downgrade. Analysts at JPMorgan have suggested that as much as 15% of Caterpillar’s revenues are derived from the oil and gas industry. Caterpillar supplies turbines to offshore rigs, as well as reciprocating engines and transmissions for on-site drilling and also provides construction equipment that is used in infrastructure development, along with aftermarket services. The downgrade came barely two weeks after Caterpillar chief executive officer Mr. Doug Oberhelman said he didn’t expect any significant impact on the firm’s businesses from depressed oil prices.

(Source: http://www.mining.com/caterpillar-stock-nosedives-on-jpmorgan-downgrade-52189/ ; 5 January 2015)