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Mining rivals Mongolia & South Africa increase mining projects

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Australia has been enjoying the riches of their mineral resources with a massive boom in iron ore, coal, LNG and other mineral exports. With the rise in prices of these mineral resources and Australia being just on the border of Asia, booming big economies like china and India  are looking to increase imports and trade deals with this mineral rich neighbor.

Australia currently is enjoying the boom in the mining industry with new mining projects being announced and many expansions  and mergers announced in the last two years due to this profitable sector. It attracts investors ands deals from its Asian neighbor’s because it has already got  good infrastructure for steady supply of resources a reliable government and governance and reliable supply of the Mineral exports.

mongolia mining oyu tolgoi australia ivanhoe

Rise of Mongolia and South Africa mining

South Africa and Mongolia have  advantages over Australia where mining is concerned, they not only have access to cheap labour but  the resources are said to be much richer according to experts and therefore less refining and processing required before export to other countries giving them an advantage in the resource’s price.

Mining in Mongolia

Mongolia is in the middle of a big economic transformation thanks to some really good mineral riches and government giving more access to outside companies to mine their riches thus making it a new investment hotspot. The country is one of the fastest growing economies of the world with a growth rate of 17 % a year and the Mongolian stock exchange was also the best performer in the world in 2010.

The Oyu Tolgoi copper gold deposit that was first explored unsuccessfully and then abandoned by BHP,  is now in Canada’s IVANHOE Mining hands with plans underway for them to develop this ,one of the worlds largest copper –Gold deposits, with a big market for them conveniently right next door (CHINA and INDIA) . TAVAN TOLGOI is another estimated six billion tone  coal deposit close to OYU TOLGOI and is said to be the largest underdeveloped coking coal project in the world.

There are other factors though where Mongolia has to step up with their infrastructure struggling  to keep up with the pace of economic growth. The rapid economic change has also resulted in their mongolian currency the ‘”tugrik” appreciating quickly  hurting other industries like tourism and the cashmere trade which has been a traditional earner for the mongolian people. With this rapid economic change creating class divides due to the perception of the mining wealth not distributed fairly, has brought some uncertainty with frequent regime changes happening in recent years.

Projects in Mongolia

  • Ivanhoe mining
  • East Asia Minerals Corp
  • ENTREE GOLD INC.
  • AREVA GROUP
  • Aspire Mining Limited
  • BHP BILLITON
  • Haranga Resources Limited
  • Aspire Mining Limited
  • MERITUS MINERALS LTD.

South Africa Mining projects surge

 

South Africa is the world’s biggest producer of platinum, and one of the leading producers of gold, diamonds, base metals and coal

Iraj Abedian, a South African economist  has advised the mining ministry, saying South Africa isn’t the only mining power trying to determine how best to ensure its natural resources benefit as many south african people as possible, he said similar debates are going on in Latin America and Australia

Only recently , Colin Barnett in one of his speeches on mining commented that Australia should be well aware of  its rivals in the mining industry, and south Africa can very soon become a competitor  to selling its mineral resources to china and india at much competitive prices. Mining grew by 47% last year, according to the Zimbabwe Chamber of Mines, and had been forecast to grow a further 44% in 2011.

Botswana will lift a moratorium on new prospecting licences for coal, coal-bed methane (CBM) and related minerals by the end of September, a government official said on Friday

Projects in South Africa

  • Cortec Mining – Kenya
  • RioZim – Zimbabwe ( with RIO TINTO)
  • Murray & Roberts (M&R)  – Zimbabwe
  • Lafarge – Zimbabwe
  • Anglo American (De Beers)  – Botswana

Samantha Stosur takes US open cup

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Samantha Stosur finished the US open in style beating the reigning American favourite Serena Williams. Stosur, 27, from the Australian state of Queensland beat Williams 6-2, 6-3 Sunday to become the first Australian woman in 31 years to win a major singles title.

Aussies Claim another Sporting Victory

samantha stosur australian champion US open

Williams was the hot favourite to win the cup but  Ninth-seeded Stosur had other plans and beat Serena Williams on American soil. The match was won in one hour and 13 minutes in front of 23,000 people on Arthur Ashe Stadium.

This is another great victory for Australia after Cadel Evans recently claimed the Tour de france cup

The match was not without controversy with Williams berating the chair umpire after receiving a one-point penalty for verbal hindrance.

Sam stosur WA Tennis champion

What Serena Williams said to umpire Asdaraki

Williams called the chair umpire a ”hater”.

”If you ever see me walking down the hall, walk the other way,” she said.

"Aren’t you the one who screwed me over last time?,” Williams bellowed at Umpire Asdaraki. "That is totally not cool.”

serena williams samantha stosur swearing

 

Related links:

http://samstosur.com/

http://en.wikipedia.org/wiki/Samantha_Stosur

Are Australian Wineries in trouble ?

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Sales figures show that wine sales slipped 3.3% in 2010/11 – the first fall in 15 years and
largest drop in annual wine sales for 22 years. Australian consumers have been  spending less on the spirits ad this has affected the Australian wine market.

While the sales of Australian wines  have gone down, French wines have been doing pretty well. French wine only accounts for 1.7% of all wine sales, but the share has doubled in the past five years. Apart from the low domestic demand in Australia  the high Australian dollar and domestic over-supply of grapes have also  affected the wine markets.

Some of the more popular wine growing region s in australia  is the Hunter Valley ( NSW,VIC), Swan valley , Margaret river( WA), Port Phillip and Gippsland ( Greater Victoria)

wines australia sales production

The wine grape production for the year 2009-10 is estimated by the ABS to be 1.53 million tones, around 9 percent lower than  the 2008-2009 harvest. The wine industry has been  affected by scarce water supplies in some regions and in some parts of south eastern Australia  also by the heat wave. In Victoria many  winegrowers was affected by the floods and outbreaks of  disease due to damp and humid conditions. The Murray darling  Swan hill zone has  been affected by disease  affecting wine production  in early parts of the year.

Red wine grapes have been the farmers popular choice in cultivation of production in 2009-10 with  it accounting for the total of 55%

The Popular grape variety cultivated by farmers in 2009-10

1. Shiraz

2. Chardonnay

3. Cabernet-Sauvignon

vineyards wine sales figures 2011 2012

The forecast for   2011 –12 is for the wine  grape production to increase by 10 %  taking into account vines reaching full production, but so far the weather is playing a dampener on  good wine grape production and these results could get affected by any major disruptions in weather.

For more detailed information  on  wine grape  production statistics you can visit  www.abs.gov.au and www.abares.gov.au

Australia and Investing In bonds

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Investing in bonds australia

So what are bonds , well its definetly not this ( Bonds  ) nor is it this  (Bond J) but according to investinginbonds.com “A bond is a debt security, similar to an I.O.U. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity known as an issuer.* In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due”.

One of the very first questions that investors who are familiar with  shares and funds but not bonds ask is: “Where do I buy bonds?” The bond market is not centralized and there is no bonds freely available like for the stock market. There is no equivalent of the ASX for trading bonds in Australia . Bonds are mostly  an over-the-counter (OTC) market where third parties, known as brokers, connect  the buyers with sellers.

FREE Online : Paper on Australian Bond markets

Investors wanting capital stability, reliable returns and protection against cyclical downturns are often advised to consider adding bonds to their portfolio.  Bonds are a very popular form of investment in the us by the general stock market investors as well as  the big managed funds. Investing in Equity is easy, you either buy off the prospectus or off the secondary market (ASX, NSX etc)

bond investment australia

After you decide to invest in bonds, you then need to decide what kinds of bond investments are right for you.

Depending on your goals, your tax situation and your risk tolerance, you can choose from municipal, government, corporate, mortgage-backed or asset-backed securities and international bonds. Within each broad bond market sector you will find securities with different issuers, credit ratings, coupon rates, maturities, yields and other features. Each one offers its own balance of risk and reward.

Australian Bond investment Options

There are also a number of large, well-managed banks with diverse global operations, higher capital levels. The high credit quality of these banks, in particular the four major Australian banks( CWB,WBC, ANZ, NAB), HSBC and Rabobank, represent a very low credit risk for investors looking to build a bond portfolio.

Until recently, most bonds were only available in face value parcels of $500,000 but often they can be also be traded through a fixed interest fund. There are a few retail bonds available for less, but the broader market was closed to most retail investors. Some brokers, including FIIG, now offer a service whereby investors can access bonds in parcels of $50,000 each offering more choice, control and diversification without the need to access fixed income through managed funds.

Hybrid/preference shares Australia

A lot of bank issuing “hybrid/preference shares”, which pay a coupon like a bond, and have a fixed face value like a bond. But are actually classed as equity, so if the company decides not to pay a dividend, you get nothing. So these could be more risky then a bond. Government bonds are like no other security in that they are not linked to performance of the economy and so provide diversification and a hedge against economic downturn in a portfolio. “Australian Commonwealth Government bonds” are considered “risk-free” important for those investors that want capital certainty and a regular income.

You can get 7-10% return from bonds, that beats a bank account, and it is a lot safer then shares.
Also if interest rates are falling, then bond prices will be going up, so you will get “capital growth” as well. (You do not get this on hybrids, as the interest rate is not fixed.)

What is a bond ? ( for dummies)

Companies and governments issue bonds to fund their day-to-day operations or to finance specific projects. When you buy a bond, you are loaning your money for a certain period of time to the issuer, be it General Electric or Uncle Sam. In return, bond holders get back the loan amount plus interest payments.

When interest rates fall, bond prices rise, and vice versa. If you hold a bond to maturity, price fluctuations don’t matter. You will get back the original face value of the bond, along with all the interest you expect.

bond markets australian company bonds

Only Bonds will shine – get your golden bullet now

Buying and selling bonds

You will need to find a broker or financial intermediary to trade because the bond market is largely over-the-counter (OTC). Wholesale bonds, like the Rabobank bond  or the HSBC bond  trade in minimum face value parcels of $500,000.

While there are a few retail bonds that can be traded in $5000 face value parcels, some brokers have access to a range of bonds that can be traded in $50,000 or $100,000 parcels, providing greater opportunities for diversification. Commonwealth Government bonds and semi-government bonds can be traded in small parcels of just $1000.
There are no fees involved in buying or selling bonds, rather the broker makes a margin between the bid price and the offer price when the transaction is agreed. Buyers and sellers are quoted prices inclusive of the margin , but this can differentiate between brokers.

Insurance bonds in australia

Referred to as tax-paid investments, insurance bonds in Australia are taxed by the fund manager at the corporate tax rate of 30% subject to being held for a minimum of 10 years and do not need to be reported on an investor’s tax return.  Where insurance bonds (or investment bonds) are withdrawn within ten years of the investment initially being made, additional tax may be payable by the investor. Investment bonds typically have entry fees of 3%-4%, charged on every contribution including regular savings plans

The “Anna Hazare” India revolution taking place in Delhi

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After the protest against the dictators in  middle east , Riots in London , and the unrest in Libya  and Greece  Its now India’s turn  with massive protest happening against corruption in India  led by activist Anna Hazare.

Indian anti-corruption activist Anna Hazare has called on the government to pass a new anti-graft(corruption) law or quit.Anna Hazare has been on a public hunger strike since last Tuesday and Thousands of supporters are gathered  in the capital Delhi, where Mr Hazare is conducting his fast.

Mr.Hazare has gained massive support from the poor and middle class who are disillusioned with the chronic corruption In India. The inflation and rising grocery prices in India has also created dissatisfaction among many of the poor in India.

anna-hazare-corrupt india graft

The Anti corruption Anna Hazare backed protest

 

Anna was arrested previously and then he agreed to a police offer permitting him to go on hunger strike for 15 days with a deal with the current government and Police. Anna Hazare has inspired Thousands of people who are fed up with the corruption in India  and also joined his rally in support of Mr Hazare in different parts of india like Mumbai (Bombay), cities of Lucknow, Chandigarh, Ahmedabad and Surat.

Mr Hazare says the government’s proposed anti-corruption bill is weak and wants his own tougher version to be passed by parliament. The Jan Lokpal bill is a civil society-backed version of the government’s Lokpal bill.A recent survey said corruption in Asia’s third largest economy had cost billions of dollars and threatened to derail growth.

 

corruption india campaign anna team 

"The youth are our national power. … And what I find significant in this ‘revolution’ is that the youth are standing behind it," Hazare told a crowd on Sunday. "I request the citizens of this country to hold sit-ins at the homes of parliamentarians from their areas to make them give a written commitment for the Lokpal," he said.

 

Anna-hazare- campaign revolution

A constitutional expert Subhash Kashyap said "Mr Hazare is well within his rights to hold protests. But to say, ‘You accept my bill and nothing else,’ might amount to coercing the government and parliament.

A leading civil-rights activist, Arundhati Roy commented on Hazare’s campaign.
"I think (Hazare) is ill-advised. Anyone who says, ‘My view should be the only view,’ is wrong," said Roy of the National Campaign for People’s Right to Information.

 

Links:

The ugly scourge of inflation plays with Australia , China and India

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Inflation, as measured by the Consumer Price Index (CPI) has been heading higher over recent months. During the three months to June 2011, headline inflation was recorded at 0.9% in comparison, property values across the combined capital cities fell by -1.5%. Inflation has become a prime concern now for fast growing economies like  India,  China but also developed economies like AUSTRALIA

Inflation and  Australia sectors

 

 india china Inflation farming australia

There are sev eral ways in which inflation can be measured. The most common is by reference to a consumer price index (CPI) which measures the changes in prices of a basket of goods and services purchased by a representative set of households. The CPI is a narrow measure of inflation and does not measure changes in the prices of other goods and service.  A much broader indicator of inflation is provided by the GDP deflator, and this is the much more popular  inflation measure used.

Some countries calculate their volume estimates of government consumption by deflating their current price estimates using representative input price indexes, while others weight together output indicators for services provided by hospitals, schools, etc.

In india Government data Tuesday showed July inflation at 9.22% from a year earlier and authorities warn it would hover between 9% and 10% till December. Economists widely predict a further 0.50 percentage point increase by next March as inflation is above the central bank’s comfort level.

The inflation rate in India was last reported at 8.62 percent in June of 2011. From 1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976

China and inflation

China’s annual housing inflation quickened in July for the second straight month this year, official data, keeping up pressure on Beijing to rein in the red-hot property sector.Many international and chinese economists have warned that a bursting of a property bubble is the biggest risk facing the world’s second-largest economy in the medium to long term.

In this short term period, rising house prices are driving up China’s consumer inflationdangerously, which accelerated to 6.5% in the year to July from June’s 6.4%. China’s average new home prices rose 4.3% in July from a year earlier, an uptick from an annual rise of 4.2% in June and 4.1% in May

Getting Business Insurance

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Business Insurance 

Running a business is not an easy task. It takes a lot of more serious responsibilities than simply taking care of your own self. A business covers different areas. Its success in operation does only rely on one factor. There are lots of planning and decision making to be done that plays an important role in the success of your business.  And if you really want to succeed on a business considering a business insurance will help you get through some risks.

insurance for business australia and overseas

So what is a business insurance? 

Business insurance is a type of protection for unforeseen circumstances and potential risks which  basically includes events that are often out of your very own control. Apparently, a business insurance helps protect everything you are working so hard for. As per what type of loss is covered by a business insurance policy, that depends mainly on: insurance company, the policy and its local limitations.

Why is Business Insurance Important?

A business insurance acts as protection of ones business. Just like any other insurance such as: personal home insurance or automobile insurance, business insurance  protects businesses from any form of disasters that might strike on it. It is considered as one of the essentials when starting up your own business. Business Insurance is designed with a specific purpose. It offers several benefits to business; hence, small or large businesses need to have one.

How to purchase the best business insurance.

Business insurance depends from State to State. Making an online research on the type of insurance a business might need in order to operate will be very helpful. There are several insuarnce to choose from online. Ranging from cheap insurance to exensive one.

However, you must into consideration the type of coverage your business might need as not all business insurance will actually suits what you are looking for. In fact, you can tailor a policy to suit your business insurance policy. Getting the best deals possible could help save you money. And also, by consulting a reputable agent or broker you’ll get the chance to shop for the best business insurance prices. By understanding what business insurance can do for your business will enlighten you on your possible options for the perfect business insurance policy you might need to avail.

Insurance is not only important to your business, it also plays an important role in your other business relationships as well. So, protect you busines now!

“This article was written by Allen Bennet who is one of the editors for http://www.cheapinsurance123.com/, which acts as an independant review of insurace companies, providing users a chance to see which insuracne plan would suit them best. They cover auto, home, health and more.”

Australian Employment Rate Steady for last eight months

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After having  the Employment rate at a healthy   rate for the last eight months, the  Unemployment rate has reached a high in July. The rise in the unemployment  rate has been just 5.1 percent in July from 4.9 percent a month earlier.

The ABS monthly aggregate hours worked series showed an increase in July, up 3.6 million hours to 1,621.4 million hours.

unemployment construction workers

The number of workers fell by 100 after a revised 18,200 gain in June. According to reports even though there was a reduction in full time jobs , it was compensated by a rise in part time jobs.

While the retail sector in Australia has been showing a downtrend  the mining sector is still booming with more jobs  available as the projects get in motion.

“The increase in resources exports will boost GDP outcomes over coming quarters, although the rebound is likely to be more protracted than previously expected,” the RBA said last week in its quarterly monetary policy statement. Australia’s third-largest oil producer, and BG Group Plc, the U.K.’s third-biggest gas producer, will start hiring the first of more than 10,000 construction workers needed for this massive  two projects later this year

The ABS reported the number of people employed remained relatively unchanged at 11,450,500 in July. A decrease in full-time employment, down 22,200 people was offset by an increase in part-time employment, up 22,100 people.

Here are some key figures from abs.gov.au

Swedish blogger splits atoms in kitchen

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Richard Handl was a keen blogger who  said that he had the radioactive elements radium, americium and uranium in his apartment in southern Sweden when police showed up and arrested him on charges of unauthorized possession of nuclear material.

 

atomic-cloud_1963731c

Handl, 31,  ran a blog  and said he had tried for months to set up a nuclear reactor at home and kept a blog about his experiments, describing how he created a small meltdown on his stove.

Handl said “I have always been interested in physics and chemistry,” and said he wanted to know if he could split atoms at home.

Handl’s blog — still available at richardsreactor.blogspot.com — describes his efforts in detail

 

Link : How atoms work

Wrap up – Diggers & Dealers 2011 Conference

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Some of the highlights of the just wrapped up Diggers and Dealers Mining Conference Held  in the gold-prospecting hub of Kalgoorlie, Western australia from 01 Aug- 03 August 2011.

diggers and dealers australia

Diggers & Dealers Conference 2011- Highlights

 

Golden diggers and dealers Shovel

For a forum that started with a dozen blokes in a pub in the West Australian mining town of Kalgoorlie-Boulder, Diggers and Dealers has morphed into the largest mining conference of its type in Australia and the third largest in the world.

The dealing and digging at Kalgoorlie WA

Iron ore company Gindalbie Metals’ has earned it the Dealer of the Year award at the Diggers and Dealers conference in Kalgoorlie due to managing  a clever relationship with Chinese steel maker Ansteel

The digger of the year was WA-based miner Independence group which has made major developments on their mines near Kambalda in the Goldfields.

Small miners complained  that the big miners BHP Billiton, Rio Tinto, and Xstrata – will be able to manipulate the MRRT’s rules to claim depreciation of their existing multi-billion-dollar mining assets against their expected MRRT liability, and almost completely negate the effect of the tax on their profits.

 

diggers and dealers WA conference 2011

Gold miner Ramelius Resources is cashed up and ready for acquisitions. Ramelius’ shares have jumped more than 300 per cent in 2010/11, from 39 cents.

The dealermaker award went to Ivanhoe Capital Corporation for its success in developing gold and coal projects in Mongolia and Queensland.

KEITH JONES, MANAGING PARTNER DELOITTE (WESTERN AUSTRALIA), on china’s growth

"The going out policy initiated by the Chinese government at the turn of the century resulted in a surge of direct Chinese investment, up from $500 million in 2000 to $59 billion in 2010. While Australia remains one of the preferred destinations for Chinese investments, other regions such as Africa and Latin America have seen accelerated inflows of Chinese capital over the past three years."

 

Joseph Riggio, of Casimir Capital, says cashed up investors in New York, Boston and Chicago want to diversify out of the floundering US dollar and are increasingly looking to ASX listed miners to do that. He said "There’s a perception that Australian companies represent a better value than their Canadian counterparts because of their focus on cash flow,"