Mining and Minerals

Iraq Gains Large Scale Benefits in Its Commercial Partnership with China

News Analysis: Having the fifth-largest oil reserves in the world and wanting to increase its production to three million barrels of oil a day puts Iraq in a very nice position in the oil industry. Since fuel hungry nations need oil, Iraq, with its great reserves, can choose to do business with whom it wants. In this case the primary selected country  for commercial partnership is their friend to the north-east: China.

The historical  approach of China in international business is “Bucks Not Bayonets” is  the catalyst for good long-term commercial transactions. Since the Chinese have a wise culture developed through thousands of years of experience, it does not make the aggressive blunders like countries only two-hundred plus years old. Threats and hostile actions buy one NOTHING in the long term. One has to develop the trust of others over time. Adroit leaders of nations understand this, foolish ones do not. Cooperation, not catastrophe, should be the driving force amongst countries.

The close relationship between the Iraqis and the Chinese will benefit both nations well.

Reference: http://tinyurl.com/m22xs68

World Bank Increases Ranking of Philippines for Ease of Doing Business

News Analysis:  Minimizing unproductive regulations regarding  establishing a business in the Philippines, as well other impediments to commerce, will help them continue in a favorable direction. Investors need to hear about the government’s intention to promote business growth. 

The resourceful and hard-working people of the country are its greatest asset.  Natural resources of the islands are another good reason to consider engaging in commerce in the Philippines. Its location provides proximity to Asian abundance.

Reference: http://tinyurl.com/mpy6ewx

International Monetary Fund Predicts Good Growth for Sub-Saharan Africa

News Analysis: The region should have increased investments from other countries due to the abundance of needed natural resources it contains. South Africa, in particular, always a leader on the continent, although more expensive than neighboring countries, will prosper. Mineral wealth, a capable work force, along with people imbued with national pride, will push South  Africa to greater prosperity.

Overall, these countries of the region   can look forward to good economic growth in the coming years. Opportunities abound in Africa for the prescient investor.

Reference: http://tinyurl.com/lpzb7yh

188 Countries in United Nations Voted that United States Cease Its Cuba Embargo

News Analysis:  A fifty-three year embargo evidences an archaic view of good international relations of a Super Power to its neighbor.  Cuba, purportedly sitting on top of an enormous gas/oil deposit [of which certain Americans knew about before Fidel Castro’s  rise to power] could decide to open up its territory to oil exploration. If so, the embargo would be immediately withdrawn, one could logically infer.

Historically, upsetting Americans by the taking over of casinos and other  businesses by the Cubans was merely ‘window dressing’; a pretext for the real value of Cuba to certain Americans: Petrochemicals.

Today, more damage is done to the Cuban people by isolating them. What gain is that to a civilized Super Power? Rather than evidencing animosities against the Cuban Government, the United States should engage it in meaningful dialogue. Opening up the American market to Cuban goods and vice-versa can only help neighborly relations. Perhaps then, Cuba would allow America to explore and develop its gas/oil deposits [America’s little secret known by a few].

Reference: http://rt.com/news/un-vote-cuba-embargo-940/

Brazilian 12,000,000,000+/- Barrel Atlantic Ocean Oil Field Auctioned

News Analysis:  A dichotomy may exist between “Rates of Return” vs. “Total Return” on invested capital. For example, a smaller field might give the producer a bigger share of the recurring cash flow, yet be of much shorter duration due to amount of petroleum recoverable.
A large field, like the aforementioned, would give a greater total dollar return due to its volume.  
Of course, in the equation for an oil production company’s prospective bid,  must be added: The on-going anticipated market price of the probable quality and quantity  of the crude over the duration of the contract; The cost of the off-shore drilling rig, labor, insurance, etc. are also important elements.

Reference: http://tinyurl.com/mjv7w2j

Lebanese Discussing Oil Development Contract Authority

News Analysis:  Since the estimated quantity of Eastern Mediterranean oil within the boundaries of Lebanese Waters is so sizable, due diligence is being displayed in the decision-making process of Contract Awarding. The possible economic benefit to the entire country should be vast. Decisions need to be carefully made for best ‘down-stream’ rewards for the People of Lebanon.

Reference: http://tinyurl.com/lvhllvm

An Economic Oasis in the Expanse

News Analysis: A very positive aspect of Mining in general is the creation of employment in more desolate areas of the world. The “Economic Multiplier” spun from employee wages and spent locally, further enhances the economic benefit to a geographic area. If one considers both the gain to the mining organization [which took the investment risk] as well as the employees’ earnings the situation is better for a ‘community’. If the mined products are utilized in the same country, so much the better.

Reference: http://tinyurl.com/ku9wwre

Greenland To Mine Uranium

News Analysis: As a by-product of mining Rare Earths [Dysprosium, Europium, Lanthanum, Neodymium, and Terbium, for example] Uranium ore is also extracted in the process. The Government of Greenland will now allow for the sales of Uranium to occur. 

The financial reward to the country is invaluable in the present world economy. Perhaps those who were in opposition would care to donate their personal monies to Greenland  so the sales would not be required?

Reference: http://tinyurl.com/mv3sl5m