No disruption to supply, ports operating as normal following earthquake - Antofagasta

Chilean copper miner Antofagasta has confirmed its operations were not affected by the 8.2-magnitude earthquake that struck off the northern coast of the country.

The ports for Pelambres, Esperanza and Michilla were all evacuated after a tsunami warning was issued, but this has now been lifted. 

India trims import tariff value of Gold, Silver in early April 2014

The Indian Government on Tuesday announced cut in import tariff value for gold and silver. The import tariff value of gold was slashed by 5.39% and that of silver was reduced by 7.20%, in tandem with prices of precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard reducing the gold import tariff value to $421 per 10 grams. The import tariffs are being slashed from the existing $445 per 10 grams. Meanwhile the import tariff value of Silver has also been cut from $694 per kilogram to $644 per kilogram.

The government move to lower the import tariff value is in track with the weakening gold prices in the global and domestic markets. Gold in India extended losses for third straight day falling by Rs.40 to Rs. 29,260 per ten grams in New Delhi. On the other hand, Silver made a marginal rebound of Rs.100 to touch Rs. 43,500 per kilogram, snapping its two-day fall. The yellow metal hit fresh seven-week low on Tuesday, forcing the government to cut the import tariff value.

The gold imports during the financial year ended March 31st is estimated to be at six-year low of 557 tonnes, as against 815 tonnes imported during the prior fiscal year. The imposition of tight controls over gold imports including the excessively high duty on imports have led to curtailed official gold import by the country during FY ’13.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.

Massive 8.2 Quake Hits Near Chile Coast, Tsunami Warning Issued; Residents Evacuating

At shortly after 1945 ET,  a massive 8.2 (revised up from 8.0) earthquake hit close to the coast of Chile:

• *MAGNITUDE 8.0 QUAKE HITS OFF COAST OF CHILE, USGS REPORTS
• *CHILE QUAKE MAGNITUDE REVISED UP FROM 8.0 TO 8.2 BY USGS
• *FLASH: TSUNAMI WARNING ISSUED AFTER MAGNITUDE 8.0 QUAKE HITS OFF
• *QUAKE CUTS ELECTRICITY SUPPLY TO MUCH OF ARICA, CHILE: TVN

The BBC reports the quake was shallow (which means it felt more powerful) and the tsunami wave's arrival is imminent. 

Copper prices was jumping on the news as the region is an active mining area.

Following reassurances:

• *TECK SAYS QUEBRADA BLANCA COPPER MINE UNAFFECTED BY QUAKE
• *PAN PACIFIC SAYS NO DAMAGE AT CASERONES COPPER MINE AFTER QUAKE

For some context of how big this is...

Chinalco forced to halt Peru’s copper project over ongoing pollution

Chinalco Mining Corporation, a subsidiary of China-own Chinalco, said Monday it had to partially halt its activities at the Toromocho copper project in Peru, as the country’s environmental watchdog ordered it Friday to do so (in Spanish) because of environmental concerns.

After inspections carried out from March 16 to March 20, the agency concluded that Chinalco has been dumping waste in the Huacrococha and Huascacocha lakes.

The environmental regulator posted a video showing a yellow-coloured liquid flowing into the mentioned waterways, which presented a higher than allowed level of contaminants at the time of the assessments.

Toromocho, in central Peru, is set to become one of the largest copper and molybdenum plants in the world. It began initial production in December last year and is scheduled to reach full production in the third quarter of 2014.

Peru is the world's second biggest copper producer. Chinalco has been developing the US$3.4 billion Toromocho since 2008.

The how and when of Chinese stimulus

The world's second largest economy is slowing down and dragging all resource-based economies down with it.

China's leaders want to move the country from an investment-led economy to one based on consumption.

But the rebalancing is proving difficult and signs of a slowdown are not hard to find.

Consensus forecast for 2014 growth in China is 7.4%, just below the official target rate set by the government (a number widely believed to be massaged so as to produce the required level).

GDP expansion at 7.4% would be the slowest in 24 years.

Something that's causing alarm among resource companies reliant on Chinese demand.

China watchers are now waiting with bated breath for the government to inject cash to rev up the economy again.

Just like the $640 billion (4 trillion yuan) package delivered in 2008-2009 that made China the only major economy to continue growing strongly through the financial crisis.

That's not going to happen says Capital Economics.

The independent research house parsed Premier Li Keqiang's speech delivered to a meeting of provincial leaders last week.

He spoke of "targeted measures", mentioned "last year's successful experience in fighting the economic slowdown" and cautioned on shifting macroeconomic policies" which may be effective in the short term but is not necessarily beneficial for the future":

The key contrast here is not just with the stimulus of 2008/09 but also with the mini-stimulus of 2012. Two years ago, as after the global financial crisis, government support took the form of across-the-board credit loosening. Policymakers took a different, more discriminating, approach in the spring and summer of last year when, as now, many were worrying about a hard landing.

Support came in the form of speeded up project approvals and budgetary spending. Credit growth slowed. This provides a model for what to expect over the months ahead. We are likely to see some new infrastructure projects given the go-ahead, work on ongoing projects accelerated, some restrictions loosened – notably on property purchases – and faster disbursement of some budgeted funds.

In any event, when looking at China in absolute terms the slowdown does not seem so alarming anymore.

Growth in 2014 would indeed be the slowest since 1990 – in the mid-Nineties Chinese growth rates peaked at an eye-watering 30%.

But mainland China is tacking onto its economy some $700 billion this year.

That's equal to the size of its entire economy in 1994.

And as big as the Swiss economy and the equivalent GDP of two South Africas and four New Zealands.

Gold price slides to 7-week low as hedge funds drop 1.8m ounces

Softness in the price of gold continued on Monday bringing the retreat in the metal from its 2014 highs to more than $90 an ounce as speculators cut bullish positions and gold-backed ETF investors scale back holdings.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in late afternoon dealings traded at $1,284.50 an ounce, down nearly $10 or 0.8% from Friday's close and at the day's low.

The yellow metal has taken a hammering over the past two weeks of trading – gold is down from a 2014 high above $1,380 reached a fortnight ago to levels last seen February 11.

Gold is still up 7% since the start of the year, but the positive momentum seems to be grinding to a halt.

Speculators in gold futures and options reversed course last week with large investors cutting back on long positions – bets that the price will go up – in the week to March 25 according to theCommodity Futures Trading Commission.

On a net basis hedge funds now hold 120,042 lots or 12 million ounces in net longs. That compares to 13.8 million ounces the previous week which was the most bullish positioning taken in more than a year.

Last week also saw a second week of reductions of holdings in exchange traded funds backed by physical gold.

Latest data show in the week to 28 March global gold ETF holdings declined by 0.4 tonnes taking total bullion allocated to investors down to 1,765.8 tonnes.

Bullion held in gold ETFs are still on track for a net gain of more than 30 tonnes during the first quarter, however.

Gold bullion holdings in global ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012, but last year saw net redemptions of 800 tonnes.

Best And Worst Performers In March And Q1

Best and worst performing assets in Q1

And just the month of March