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Visual Capitalist considers the hydrogen city: How hydrogen can help achieve zero emissions

May 14th, 2019

by Nicholas LePan | posted with permission of Visual Capitalist | May 14, 2019

In the modern context, cities create somewhat of a paradox.

While cities can improve the lives of people and entire nations, they also tend to be the main contributors of pollution and CO2 emissions.

How can we encourage this growth, while also making city energy use sustainable?

Resolving the paradox

This infographic comes to us from the Canadian Hydrogen and Fuel Cell Association and it outlines hydrogen technology as a sustainable fuel for keeping urban economic engines running effectively for the future.

The hydrogen city How hydrogen can help achieve zero emissions

 

The urban economic engine

Today, more than half of the world’s population lives in cities and, according to U.N. estimates, that number will grow to 6.7 billion by 2050—or about 68% of the global population.

Simultaneously, it is projected that developing economies such as India, Nigeria, Indonesia, Brazil, China, Malaysia, Kenya, Egypt, Turkey and South Africa will drive global growth.

Development leads to urbanization, which leads to increased economic activity:

The difficulty in this will be achieving a balance between growth and sustainability.

Currently, cities consume over two-thirds of the world’s energy and account for more than 70% of global CO2 emissions to produce 80% of global GDP.

Furthermore, it’s projected by the McKinsey Global Institute that the economic output of the 600 largest cities and urban regions globally could grow $30 trillion by the year 2050, comprising two-thirds of all economic growth.

With this growth will come increased demand for energy and CO2 emissions.

The hydrogen-fueled city

Hydrogen, along with fuel cell technology, may provide a flexible energy solution that could replace the many ways fossil fuels are used today for heat, power and transportation.

When used, hydrogen and fuel cell technology creates water vapour and oxygen, instead of harmful smog in congested urban areas.

According to the Hydrogen Council, by 2050 hydrogen could generate annually:

  • 1,500 TWh of electricity

  • 10% of the heat and power required by households

  • Power for a fleet of 400 million cars

The infrastructure requirements for hydrogen make it easy to distribute at scale. Meanwhile, for heat and power, low concentrations of hydrogen can be blended into natural gas networks with ease.

Hydrogen can play a role in improving the resilience of renewable energy sources such as wind and solar, by being an energy carrier. By taking surplus electricity to generate hydrogen through electrolysis, energy can be stored for later use.

In short, hydrogen has the potential to provide the clean energy needed to keep cities running and growing while working towards zero emissions.

See Part 1 of this series: Evolution of hydrogen, from the Big Bang to fuel cells.

Posted with permission of Visual Capitalist.

This diamond’s huge, but is it worth much?

April 25th, 2019

by Greg Klein | April 25, 2019

Thanks partly to new processing gear that’s less likely to break up the stones, Lucara Diamond TSX:LUC keeps pulling record-setting rocks out of its Karowe mine in Botswana. Now the company might have beat its previous record with a 1,758-carat diamond that would be the second-largest of gem quality ever found—if it’s of gem quality.

This diamond’s huge, but is it gem quality?

“Domains of high-quality white gem” may lurk within
Karowe’s largest recovered rock. (Photo: Lucara Diamond)

It’s “been characterized as near gem of variable quality, including domains of high-quality white gem,” Lucara explains. “Further detailed analysis is ongoing.”

The all-time record for gem-quality rough remains the 3,106-carat Cullinan, a 1905 discovery in South Africa that was cut and polished into the 530.2-carat Great Star of Africa in Queen Elizabeth II’s sceptre and produced eight other gems for Britain’s Crown Jewels. Tentatively holding second place is Lucara’s 1,109-carat Lesedi La Rona, which earlier this month hit the market as a 302.37-carat jewel with 66 smaller stones.

The company expects further fantastic finds, thanks to an x-ray transmission (XRT) recovery circuit commissioned in 2015 that strives to keep large stones intact. Since then Lucara produced 12 diamonds surpassing 300 carats, with the new find and the Lesedi La Rona exceeding 1,000 carats, out of total production approximating 1.4 million carats. Half of the 12 300-plus-carat rocks were gem quality, Lucara stated.

XRT notwithstanding, recovery might have separated Lesedi La Rona from a stone originally weighing in at 2,774 carats. That possibility was reported by the Gemological Institute of America last year after analysis of the 1,109-carat piece, a 373.72-carat fragment that Lucara sold separately, the 812-carat Constellation and three others weighing 374, 296 and 183 carats. The GIA’s analysis found “compelling evidence” that all five “likely originated from the same rough, with a combined weight of at least 2,774 carats.” Geological as well as recovery processes could be blamed for the break-up, Lucara responded at the time.

But the source of those recoveries should improve too “as we mine deeper in the ore body and gain access to the geologically favourable EM/PK(S) unit, the source of both of our record-breaking, plus-1,000-carat diamonds,” said CEO Eira Thomas.

See an infographic: Six of the world’s most famous diamonds.

Read about Koh-i-Noor: The History of the World’s Most Infamous Diamond.

Read Resource Clips visits the diamond industry in Belgium and the Netherlands.

Graff Diamonds polishes its image with polished Lesedi La Rona

April 11th, 2019

by Greg Klein | April 11, 2019

The company loves to proclaim its pre-eminent technology and expertise, but for this achievement the big boss overruled all that. Despite an initial analysis that said it couldn’t be done, Laurence Graff insisted on a 300-plus-carat polished jewel out of a 1,109-carat rough. Along with 66 smaller stones, that’s what he got. At 302.37 carats the Graff Lesedi La Rona “is the largest, highest-colour, highest-clarity diamond ever certified by the GIA, and the world’s largest square emerald cut diamond,” the company announced.

On paying $53 million in 2017 for the product of Lucara Diamond’s (TSX:LUC) Karowe mine in Botswana, Graff attributed unusual powers to the piece. “The stone will tell us its story,” he said. “It will dictate how it wants to be cut and we will take the utmost care to respect its exceptional properties.”

Graff Diamonds polishes its image with polished Lesedi La Rona

The Graff Lesedi La Rona:
As for the price, pikers need not inquire.
(Photo: Graff Diamonds)

In the end, it was Graff himself who did the dictating, at least where finished weight was concerned. By doing so, he overruled conclusions determined through a custom-built scanner with new imaging software specifically acquired to assess the stone, the largest gem-quality diamond found in a century. But Graff’s new technology enabled staff to chart the stone’s imperfections and plan the largest, highest-clarity jewels possible.

A master craftsman, also a classically trained musician, “used his highly attuned musician’s ear to listen for the smooth progression of the laser” as he cut the first incisions. A team of gemologists and master polishers toiled for over 18 months to produce this “masterpiece of technical audacity and diamond artistry.”

Having lost over two-thirds of the rough’s weight, cutting and polishing produced 66 additional diamonds, ranging from less than one carat to more than 26 carats.

Among gem-quality rough diamonds, Lesedi La Rona ranked second only to the 3,106.75-carat Cullinan diamond, a 1905 discovery from South Africa. That stone produced nine polished gems, eight of them set into Britain’s Crown jewels. The ninth, considered the world’s largest top-quality polished diamond, is the 530.2-carat Great Star of Africa in Queen Elizabeth II’s sceptre.

The Cullinan mine currently operates under Petra Diamonds, which two weeks ago uncovered a 425.1-carat gem-quality diamond at the site.

Graff Diamonds credits itself with having “cut and polished the majority of the 20 largest diamonds discovered this century.” One that Graff missed, however, was the Lesotho Legend, a 910-carat 2018 discovery from Gem Diamonds’ Letseng mine in Lesotho and the fifth-largest gem-quality rough on record. Two months later Antwerp-based Samir Gems bought the stone for $40 million.

In 2017 Graff paid Lucara $17.5 million for a 373.72-carat fragment that broke off of Lesedi La Rona during mine recovery.

But if Graff’s publicist neglected to add “mystery” to Lesedi La Rona’s ineffable polished qualities, that word would apply to the price. The amount wasn’t disclosed.

See an infographic: Six of the world’s most famous diamonds.

Read about Koh-i-Noor: The History of the World’s Most Infamous Diamond.

Read Resource Clips visits the diamond industry in Belgium and the Netherlands.

Frank Holmes comments on how mining mergers can affect the Canadian industry

March 5th, 2019

…Read more

The new colonialists

October 19th, 2018

China’s overseas expansion raises concerns of influence and arrogance

by Greg Klein

The country boosts its domestic industries through state-sanctioned dumping along with lax environmental, health and safety standards. Aggressive overseas expansion provides money and infrastructure to struggling nations in return for resources and acquiescence. Espionage, counterfeit exports, currency manipulation, economic warfare, intellectual theft—“particularly the systematic theft of U.S. weapons systems”—that’s all part of China’s goal to gain “veto authority over other nations’ economic, diplomatic and security decisions,” according to a recent U.S. study ordered by President Donald Trump.

So it seems a bit anti-climactic to accuse the Red Dragon of arrogance.

But could that become China’s undoing, especially when the arrogance reflects racism? Examples from Kenya reveal a steady stream of racially charged incidents. Among the most recent was ongoing racist abuse from the manager of a Chinese-owned assembly plant. A Chinese company running a much bigger Kenyan operation, the Standard Gauge Railway, faces accusations of practising racial preferences and segregation. Further accounts relay instances of demeaning treatment, even assaults, on African workers in their own countries by Chinese bosses.

China’s overseas expansion brings allegations of influence and arrogance

That might be more a side effect than part of the official agenda, which is alarming in itself. According to Globe and Mail Africa correspondent Geoffrey York, Chinese influence “is sharply increasing in African media, academia, politics and diplomacy.” Earlier this month he reported that a South African newspaper chain backed by Chinese investors fired a columnist who denounced their country’s treatment of Muslims.

“In Zambia, heavily dependent on Chinese loans, a prominent Kenyan scholar was prevented from entering the country to deliver a speech critical of China. In Namibia, a Chinese diplomat publicly advised the country’s president to use pro-China wording in a coming speech. And a scholar at a South African university was told that he would not receive a visa to enter China until his classroom lectures contain more praise for Beijing.”

York pointed to “the huge number of African leaders who flock to the summit of China’s main African organization, the Forum on China-Africa Cooperation (FOCAC),” an annual conference featuring announcements of Chinese financial aid. At last month’s event, President Xi Jinping promised grants, loans and investments totalling $60 billion, equaling an amount pledged three years earlier.

China’s massive African infrastructure projects, built by Chinese companies that often enjoy Chinese government financial support, include railways and hydro-electric power. But Chinese interests also get their hands on Africa’s mineral resources as well as oil and gas reserves, not to mention new markets for Chinese exports. Chinese loans have been criticized for overwhelming African countries with debt.

In the values that it promotes, in the manner that it operates and in the impact that it has on African countries, FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe.—South African
President Cyril Ramaphosa

Then there’s the political influence. The spectacle of African leaders singing China’s praises has provoked cynicism that South African President and FOCAC co-chairperson Cyril Ramaphosa tried to dispel: “In the values that it promotes, in the manner that it operates and in the impact that it has on African countries, FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe.”

Those remarks might alternately challenge or support allegations of sycophancy. But York notes China’s success in convincing African countries to drop their support for Taiwan, promoting Chinese language and culture, increasing media ownership with attendant interference, and—laughably, considering the communist state’s journalistic standards—providing “‘training’ for 1,000 African media professionals annually.”

Such are the challenges faced by the developing world. And others too.

From Australia come additional examples. “The hubris of the Chinese Communist Party has reached a great and giddy high,” the Sidney Morning Herald declared last month. International editor Peter Hartcher recounted a meeting between Chinese finance minister Lou Jiwei and Australian treasurer Joe Hockey in which Lou lit a cigarette without asking permission, then badgered the Aussie with big talk that included offers to take over Rio Tinto, buy 15% of the top 200 ASX-listed companies or grab multi-billion-dollar positions in Australian banks.

Hartcher mentioned another incident a few years ago, when “a Chinese minister walked into the Parliament House office of an Australian Liberal Party minister in the course of a negotiation.

“The visitor sat on the sofa, reclined with his hands locked behind his head, and put his feet up on the coffee table. He crossed his ankles casually, the soles of his shoes pointed towards his Australian host. A mere detail, yes, but a telling one. It infuriated the Australian, who was still steaming as he recounted the story years later.”

Then there’s the threats. In a Sydney meeting last year, Hartcher writes, Labor opposition leader Bill Shorten and two of his key people heard Chinese Communist Party official Meng Jianzhu demand their party support an extradition treaty. They objected, largely due to China’s death penalty.

“To get his way, Meng threatened to mobilize the Chinese diaspora living in Australia to vote against the Labor party. The Labor leaders were unbowed and unimpressed. ‘We cannot let these bastards push us around,’ one later remarked to a colleague. Labor continued to oppose the extradition treaty.”

Score one for Down Under determination. Hartcher warns that China could meet its comeuppance once the country’s economic growth stops, possibly in a decade or so. Still, that gives the Middle Kingdom considerable time to expand its influence in acquiescent countries, which need not be limited to the developing world.

Like Canada, for example. Do our politicians match Australian Labor’s resolve? Do our media match the Sidney Morning Herald’s candour? Or would the example of HD Mining International, which planned to staff underground operations at a British Columbia mine exclusively with Chinese workers, typify Canada’s response?

And the mania continues

August 10th, 2018

How gold rushes helped make the modern world

by Benjamin Wilson Mountford/La Trobe University and Stephen Tuffnell/University of Oxford | posted with permission of The Conversation

How gold rushes helped make the modern world

Detail from an 1871 lithograph by Currier & Ives portraying the Californian goldfields in 1849.

 

This year is the 170th anniversary of one of the most significant events in world history: the discovery of gold at Sutter’s Mill in Coloma, California. On January 24, 1848, while inspecting a mill race for his employer John Sutter, James Marshall glimpsed something glimmering in the cold winter water. “Boys,” he announced, brandishing a nugget to his fellow workers, “I believe I have found a gold mine!”

Marshall had pulled the starting trigger on a global rush that set the world in motion. The impact was sudden—and dramatic. In 1848 California’s non-Indian population was around 14,000; it soared to almost 100,000 by the end of 1849, and to 300,000 by the end of 1853. Some of these people now stare back at us enigmatically through daguerreotypes and tintypes. From Mexico and the Hawaiian Islands; from South and Central America; from Australia and New Zealand; from Southeastern China; from Western and Eastern Europe, arrivals made their way to the golden state.

How gold rushes helped make the modern world

JCF Johnson’s Euchre in the Bush, circa 1867, depicts a card game
in a hut on the Victorian goldfields in the 1860s. (Oil on canvas
mounted on board, courtesy of the Art Gallery of Ballarat)

Looking back later, Mark Twain famously described those who rushed for gold as

a driving, vigorous restless population … an assemblage of two hundred thousand young men—not simpering, dainty, kid-gloved weaklings, but stalwart, muscular, dauntless young braves…

“The only population of the kind that the world has ever seen gathered together,” Twain reflected, it was “not likely that the world will ever see its like again.”

Arriving at Ballarat in 1895, Twain saw first-hand the incredible economic, political and social legacies of the Australian gold rushes, which had begun in 1851 and triggered a second global scramble in pursuit of the precious yellow mineral.

“The smaller discoveries made in the colony of New South Wales three months before,” he observed, “had already started emigrants towards Australia; they had been coming as a stream.” But with the discovery of Victoria’s fabulous gold reserves, which were literally Californian in scale, “they came as a flood.”

Between Sutter’s Mill in January 1848, and the Klondike in the late 1890s, the 19th century was regularly subject to such flooding. Across Australasia, Russia, North America and Southern Africa, 19th century gold discoveries triggered great tidal waves of human, material and financial movement. New goldfields were inundated by fresh arrivals from around the globe: miners and merchants, bankers and builders, engineers and entrepreneurs, farmers and fossickers, priests and prostitutes, saints and sinners.

How gold rushes helped make the modern world

A nugget believed to be the first piece of gold
discovered in 1848 at Sutter’s Mill in California.
(Smithsonian National Museum of American History)

As the force of the initial wave began to recede, many drifted back to more settled lives in the lands from which they hailed. Others found themselves marooned, and so put down roots in the golden states. Others still, having managed to ride the momentum of the gold wave further inland, toiled on new mineral fields, new farm and pastoral lands, and built settlements, towns and cities. Others again, little attracted to the idea of settling, caught the backwash out across the ocean—and simply kept rushing.

From 1851, for instance, as the golden tide swept towards NSW and Victoria, some 10,000 fortune seekers left North America and bobbed around in the wash to be deposited in Britain’s Antipodean colonies alongside fellow diggers from all over the world.

Gold and global history

The discovery of the precious metal at Sutter’s Mill in January 1848 was a turning point in global history. The rush for gold redirected the technologies of communication and transportation, and accelerated and expanded the reach of the American and British Empires.

Telegraph wires, steamships and railroads followed in their wake; minor ports became major international metropolises for goods and migrants (such as Melbourne and San Francisco) and interior towns and camps became instant cities (think Johannesburg, Denver and Boise). This development was accompanied by accelerated mobility—of goods, people, credit—and anxieties over the erosion of middle class mores around respectability and domesticity.

But gold’s new global connections also brought new forms of destruction and exclusion. The human, economic and cultural waves that swept through the gold regions could be profoundly destructive to Indigenous and other settled communities, and to the natural environment upon which their material, cultural and social lives depended. Many of the world’s environments are gold rush landscapes, violently transformed by excavation, piles of tailings and the reconfiguration of rivers.

How gold rushes helped make the modern world

The Earth, at the End of the Diggings.
(Courtesy, Ballaarat Mechanics’ Institute)

As early as 1849, Punch magazine depicted the spectacle of the earth being hollowed out by gold mining. In the “jaundice regions of California,” the great London journal satirised: “The crust of the earth is already nearly gone … those who wish to pick up the crumbs must proceed at once to California.” As a result, the world appeared to be tipping off its axis.

In the U.S. and beyond, scholars, museum curators and many family historians have shown us that despite the overwhelmingly male populations of the gold regions, we cannot understand their history as simply “pale and male.” Chinese miners alone constituted more than 25% of the world’s goldseekers, and they now jostle with white miners alongside women, Indigenous and other minority communities in our understanding of the rushes—just as they did on the diggings themselves.

Rushes in the present

The gold rushes are not mere historic footnotes—they continue to influence the world in which we live today. Short-term profits have yielded long-term loss. Gold rush pollution has been just as enduring as the gold rushes’ cultural legacy. Historic pollution has had long-range impacts that environmental agencies and businesses alike continue to grapple with.

At the abandoned Berkley pit mine in Butte, Montana, the water is so saturated with heavy metals that copper can be extracted directly from it. Illegal mining in the Amazon is adding to the pressures on delicate ecosystems and fragile communities struggling to adapt to climate change.

The phenomenon of rushing is hardly alien to the modern world either—shale gas fracking is an industry of rushes. In the U.S., the industry has transformed Williston, North Dakota, a city of high rents, ad hoc urban development and an overwhelmingly young male population—quintessential features of the gold rush city.

In September last year, the Wall Street Journal reported that a new gold rush was underway in Texas: for sand, the vital ingredient in the compound of chemicals and water that is blasted underground to open energy-bearing rock. A rush of community action against fracking’s contamination of groundwater has followed.

The world of the gold rushes, then, is not a distant era of interest only to historians. For better or worse, the rushes are a foundation of many of the patterns of economic, industrial and environmental change central to our modern-day world of movement.

Benjamin Mountford and Stephen Tuffnell’s forthcoming edited collection A Global History of Gold Rushes will be published by University of California Press in October 2018. A sample of their work can also be found in the forthcoming volume Pay Dirt! New Discoveries on the Victorian Goldfields (Ballarat Heritage Services, 2018).

Benjamin Wilson Mountford, David Myers Research Fellow in History, La Trobe University and Stephen Tuffnell, Associate Professor of Modern U.S. History, University of Oxford

This article was originally published on The Conversation. Read the original article.

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Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

June 11th, 2018

by Greg Klein | June 11, 2018

It was a day of big moves for energy minerals as China bought into Ivanhoe, Vale lengthened Voisey’s and streaming companies went after the Labrador nickel mine’s cobalt.

On June 11 Robert Friedland announced CITIC Metal would pay $723 million for a 19.9% interest in Ivanhoe Mines TSX:IVN, surpassing the boss’ own 17% stake to make the Chinese state-owned company Ivanhoe’s largest single shareholder. Another $78 million might also materialize, should China’s Zijin Mining Group decide to exercise its anti-dilution rights to increase its current 9.9% piece of Ivanhoe.

Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

At peak production, Voisey’s underground operations are expected to
ship about 45,000 tonnes of nickel concentrate annually to Vale’s
processing plant at Long Harbour, Newfoundland.

Proceeds would help develop the flagship Kamoa-Kakula copper-cobalt mine in the Democratic Republic of Congo and the Platreef platinum-palladium-nickel-copper-gold mine in South Africa, as well as upgrade the DRC’s historic Kipushi zinc-copper-silver-germanium mine. Ivanhoe and Zijin each hold a 39.6% share in the Kamoa-Kakula joint venture.

Even bigger news came from St. John’s, where Newfoundland and Labrador Premier Dwight Ball joined Vale NYSE:VALE brass to herald the company’s decision to extend Voisey’s Bay operations by building an underground mine.

The announcement marked the 16th anniversary of Vale’s original decision to put Voisey (a Friedland company discovery) into production. Mining began in 2005, producing about $15 billion worth of nickel, copper and cobalt so far. Open pit operations were expected to end by 2022. Although a 2013 decision to go ahead with underground development was confirmed in 2015, the commitment seemed uncertain as nickel prices fell. That changed dramatically over the last 12 months.

With construction beginning this summer, nearly $2 billion in new investment should have underground operations running by April 2021, adding at least 15 years to Voisey’s life. The company estimates 16,000 person-years of employment during five years of construction, followed by 1,700 jobs at the underground mine and Long Harbour processing plant, with 2,135 person-years in indirect and induced employment annually.

Nickel’s 75% price improvement over the last year must have prodded Vale’s decision. But streaming companies were quick to go after Voisey’s cobalt. In separate deals Wheaton Precious Metals TSX:WPM and Cobalt 27 Capital TSXV:KBLT have agreed to buy a total of 75% of the mine’s cobalt beginning in 2021, paying US$390 million and US$300 million respectively. They foresee an average 2.6 million pounds of cobalt per year for the first 10 years, with a life-of-mine average of 2.4 million pounds annually.

Both companies attribute cobalt’s attraction to clean energy demand and a decided lack of DRC-style jurisdictional risk. But Vale also emphasizes nickel’s promise as a battery metal. Last month spokesperson Robert Morris told Metal Bulletin that nickel demand for EVs could rise 10-fold by 2025, reaching 350,000 to 500,000 tonnes.

Total nickel demand currently sits at slightly more than two million tonnes, Morris said. New supply would call for price increases well above the record levels set this year, he added.

Jayant Bhandari brings a dissenting perspective to geopolitical issues

May 25th, 2018

…Read more

Unapologetically unorthodox

April 30th, 2018

Jayant Bhandari rejects convention as he discusses economies, cultures and opportunities

by Greg Klein

There are contrarians and there are contrarians. But maybe Jayant Bhandari would be better called a controversian. As a prolific writer/commentator and an adviser to institutional investors, his comments reflect a mind unsatisfied with received wisdom. Now a resident of Singapore, his travels have taken him to 80 countries, seven of which he’s lived in. That background has influenced his perspective on a number of topics including the emerging markets—or emerging market singular. China’s the only one, he insists.

Jayant Bhandari rejects convention to discuss emerging markets, the West and China

Jayant Bhandari goes beyond the
mainstream to examine the West,
China, emerging markets and gold.

Speaking on the phone to ResourceClips.com while visiting central India, he used that country to illustrate what he considers to be the emerging market fallacy. With a per-capita GDP of about $1,800, the country enjoys 7.5% growth. Multiplying those numbers shows India’s economy increasing by $135 per capita.

“Now 7.5% looks very good, but look at America,” Bhandari points out. Although it’s growing at “only” 2.3%, its per-capita GDP reaches nearly $50,000. “That translates into $1,150 growth per capita, which means that America’s GDP, on a per-capita basis, is growing nine times faster than India’s.”

He argues that people and organizations—like the World Bank and IMF—are dead wrong in claiming the two countries shouldn’t be compared.

Taking a pessimistic view towards much of the globe, he emphasizes that “something like 75% of the world’s consumption of commodities happens in China. So it is China which is in the driver’s seat and in my view it will continue to do very well going forward.”

While Chile, Argentina and Peru hold out hope, the rest of South America shows little prospect, he believes. Central America faces serious crime and social unrest. “Just about everything in Africa is imploding. The international media are almost completely ignoring the problems of South Africa which is, in my view, rapidly moving in the direction of a civil war. And if South Africa implodes, it won’t take much for the rest of sub-Saharan Africa to implode.”

Bhandari adds that “Chinese money and Chinese businesses enforce some kind of stability in many of these countries.” Yet lingering problems bode poorly for the future “and it is a reason why Trump is asking for a wall between the U.S. and Mexico. The Third World is not in good shape at all.”

Consequently many of its people appreciate gold’s safe haven status. “They don’t trust their institutions and they don’t trust their social structures,” Bhandari maintains.

Jayant Bhandari disregards convention to discuss emerging markets, the West and China

“The biggest buyers of gold are in the Middle East and south Asia because institutions in these countries simply don’t work and people do not trust them. They do not even trust their families and friends, basically. Pakistan is imploding right now, India is rapidly moving in that direction and wealthy people of these countries will rapidly move their investment wealth into gold once they realize that economic growth isn’t happening anymore.”

Although he regards himself “ambivalent about buying gold in Western countries,” he says: “If enough gold-buying happens in these poor countries, the gold price will do quite well and that will benefit buyers of gold in Western countries.

“Of course you have to protect yourself from government interference and it’s wise to keep some of your wealth in a form that you can keep in your own pocket.”

Still, Bhandari sees too much emphasis on gold’s price in U.S. dollars. Non-American buyers “look at gold in the currencies that they use at home. When people focus too much on U.S. dollar pricing of gold they might not understand the technical future of gold.”

What could trigger a significant and sustained price increase? One possibility could be turmoil in South Africa “because those problems would very rapidly spread across sub-Saharan Africa. But I also see problems continuing to increase in India and if this country increases its consumption very slightly on a per-capita basis, it will start consuming a lot more gold. And social instability is increasing in this country.”

People should pay attention to what Western civilization stands for in hopes that they can preserve it.

Among Bhandari’s more optimistic endeavours is Capitalism and Morality, a philosophy seminar that he hosts in Vancouver each year. “My purpose is to bring people together to discuss Western civilization, what I consider to be the only civilization that has ever existed.”

Considering the West unique for its respect towards reason and individuality, Bhandari says, “People should pay attention to what Western civilization stands for in hopes that they can preserve it.”

What does Bhandari’s perspective mean to investors? He examines the mistakes people make in junior resource stocks at the International Mining Investment Conference, held in Vancouver on May 15 and 16. For a 25% admission discount click here and enter the code RESOURCECLIPS.

Read about conference speakers Simon Moores and Ed Steer.

Lucara Diamond scoops up $53 million for world’s largest uncut rough

September 25th, 2017

by Greg Klein | September 25, 2017

The second-largest gem-quality diamond ever found now advances to “its next stage of evolution,” as Graff Diamonds takes on the 1,109-carat Lesedi La Rona. A company that modestly credits itself with fashioning “the most fabulous jewels in the world” plunked down $53 million for the product of Lucara Diamond’s (TSX:LUC) Karowe mine in Botswana, an ongoing source of record-sized rocks.

Lucara Diamond scoops up $53 million for world’s largest uncut rough

The Lesedi La Rona “will dictate how it
wants to be cut,” said buyer Laurence Graff.
(Photo: Donald Bowers/Getty Images for Sotheby’s)

Curiously, Lucara president/CEO William Lamb called the price “an improvement on the highest bid received at the Sotheby’s auction in June 2016.” That was when his company rejected a reported $61-million bid, hoping to haul in $70 million or more. Presumably the discrepancy results from what would have been the gavel-swinger’s piece of the action. As is usually the case for rough sales, the Graff transaction took place sans auction. By press time Lamb hadn’t responded to a ResourceClips.com inquiry.

Graff had previously paid the miner $17.5 million for a 373.72-carat shard that broke off Lesedi during the recovery process. With improved technology, Lucara and other companies hope to avoid such damage, making super-sized stones less uncommon.

The Lesedi sale amounts to $47,777 per carat, but falls short of a record for rough. In May 2016 Lucara got $63.11 million, or $77,649 per carat, for the 812.77-carat Constellation, another Karowe monster.

“The stone will tell us its story,” Laurence Graff said of his latest purchase. “It will dictate how it wants to be cut and we will take the utmost care to respect its exceptional properties.”

They’ll have to. Given the unique qualities of each stone, cutting and polishing can present heart-stopping challenges. But, since the time South Africa’s 3,106.75-carat Cullinan diamond was subdivided into nine components of Britain’s Crown Jewels, technology has improved the ability to both understand a rock’s properties and reshape it into brilliant bling.

But “why would you want to polish it?” Lamb reportedly had asked previously. According to a July 2017 Reuters story, he argued, “The stone in the rough form contains untold potential…. As soon as you polish it into one solution, everything else is gone.”

Lesedi has not only raised Karowe’s profile but influenced proposed legislation that would allow Botswana to purchase exceptionally large or unusual diamonds from its mines. Earlier this month Lucara stated its support for the plan, emphasizing that prices would reflect market values.

Read about the recently published Koh-i-Noor: The History of the World’s Most Infamous Diamond.