...the period. The spirit of Spanish expansionism was at its crest when it reached the Philippines in the second half of the sixteenth century. The archipelago became the base of further efforts to conquer and evangelize new areas and design new trade routes in search primarily of spices but also of gold and other precious merchandise. The Spaniards failed to develop mining in the country, but left behind one of the basic building blocks of the present-day mining laws–the Regalian Doctrine. In essence, the Regalian Doctrine stipulates that all minerals and substances underneath all lands, public or private belong to the state. In effect, the law rests on the principle of eminent domain which reserves to the state the right to develop the mines on its own initiative or through private concessions. With the Americans, mining industries accelerated as the country’s economy strengthened its links to the needs of the industrialized countries like the US. The growth of the mining industry in the Philippines under the Americans may be said to have undergone three stages: (a) 1899-1919; (b) 1920-30; and (c) 1930-42. The first stage could be associated to the rapid technological change during the last quarter of the nineteenth century in the United States. The second period was characterized by the first local gold boom precipitated by the sensational gold finds in Benguet and Balatoc. In the...
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...report by KPMG for IBEF 2 4 9 12 13 17 18 Market Overview The metal industry is a key sector in the Indian economy as it meets the requirements of a wide range of important industries such as engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging etc. The metal industry consists of two major groups: ferrous metals and non-ferrous metals. Non-ferrous metals, which include aluminium, copper, zinc, lead, nickel and tin, are used to make alloys, castings, forgings, extrusions, wires, cables, pipes, etc., and find their application in a number of sectors such as agriculture, infrastructure facilities like power plants, automobiles, railways, telecommunications, building and construction and in engineering and chemical plants. There are significant reserves of non-ferrous metal ores in India. India is rich in bauxite (aluminium ore) and has grades of zinc, lead and copper reserves. Copper, lead and zinc are also imported as scrap or concentrates to be processed by secondary/custom smelters. Nickel and tin are also imported by India. Ferrous metals primarily consist of iron and different varieties of steel. Indian steel industry has shown strong performance in the recent past in terms of production, capacity utilisation, exports and consumption. India is now a major competitor among steel producers in the world. The sSteel industry contributes 1.3 per cent to India’s GDP and accounts for 10 per cent in Excise Duty collections. The...
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...itself to make, and four billion of them are created a year. The US government dances around this problem and should have eliminate them back in 2006 when people were melting the copper and selling it for profit. This paper states several topics of why the penny only causes harm to US citizens and the economy. The obvious solution to fix a problem like this, simply abolish the penny as US currency, and round all cash transactions to the nearest fifth cent. Death of the Penny: The Elimination of America’s One Cent Coin and its Impact on The United States Economy “I will seriously consider eliminating the penny as long as we find another place for Lincoln to land,” the support of abolishing the penny from the most powerful man in America; President, Barack Obama. For over a hundred years people have paid for everyday goods with change, or coins. As inflation in the America rises, the value of coins diminishes. (Inflation Figures). Take the penny for example; commonly known as the copper coin has hardly any copper to it. Created with ninety-seven percent zinc and only two and a half percent copper, the penny doesn’t truly stand up to its expectations. Based on the 2011 Annual Report for US Mints, the cost to make a single penny runs around 2.41 cents. Studies have shown if the penny may be dropped as a piece of US currency, rounding up or down to the nearest fifth cent, and have no effect on the customer or producer. Countries around the...
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...MarketLine Case Study Glencore & Xstrata Creating the fourth largest global mining company Reference Code: ML00007-065 Publication Date: January 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED GLENCORE & XSTRATA: CREATING THE FOURTH LARGEST GLOBAL MINING COMPANY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00007-065 /Published 01/2013 Page | 1 OVERVIEW Catalyst Glencore International, a commodity trading giant, is seeking to merge with diversified mining company Xstrata. The move was announced in February 2012 with the proposal accepted by shareholders in November 2012. The deal is worth $31bn and would create the fourth largest mining company in the world behind the top three of BHP Billiton, Vale, and Rio Tinto. The company would also possess leading positions in other commodities in power generation and agricultural products. Summary Glencore is a company which operates in commodity markets, including mining. The company engages in both industrial activity and marketing, which allows it to safeguard against volatilities in an individual market. Further, by engaging in marketing, the company is able to adapt more effectively to adverse conditions. Glencore has demonstrated value creation in its acquisitions, with notable acquisitions including Kazzinc and Viterra. The company’s size also now allows it to negotiate big contracts, as it did with Rusal. Glencore was...
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...Valuation of Metals and Mining Companies Author: Svetlana Baurens E-Mail: baurens@basinvest.ch Date: 7.11.2010 In collaboration with the University of Zürich, Swiss Banking Institute and Prof. Dr. T. Hens Contents 1. Introduction ...............................................................................................................7 1.1. Motivation .......................................................................................................7 1.2. Structure ..........................................................................................................7 1.3. Definition of terms .........................................................................................8 2. Valuation models in mining and metals industry ................................................12 2.1. Special features of metals and mining companies ........................................12 2.2. Classification of valuation models ................................................................15 2.3. Resource & Reserve .....................................................................................17 3. Valuation of Explorations properties ...................................................................20 3.1. Appraised Value Method (Cost Approach) ...................................................23 3.2. Comparable Transactions (Market Approach) ..............................................24 4. Cycle importance in valuation of metals and mining companies...
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...new technology allows mankind to produce metals and minerals at progressively lower cost of production in real terms, and therefore at progressively lower prices, improving their availability, accessibility and utilization worldwide. However, the developers of such technology are not guaranteed to reap the benefits from this effort: There is an expectation that technology developers will gain an advantage over their competitors. Is this a short-term benefit that results from a temporary cost or efficiency improvement, or is it a sustainable longer term “edge” that prevails even after metal or mineral price has been eroded by the implementation of a major step change technology? This issue is examined by reference to several case study examples in the copper industry. modity producers to gain a cost advantage over their competitors, at least for a period of time. The more sustainable and longer term, the greater the competitive edge achieved. Technology development is costly and, in general, the greater the potential benefit, the higher the cost. The commercial implementation of new technology is inherently risky — the technology has not been applied before and must be proven over time. The risk must be managed, and this involves additional cost and intellectual effort. Finally, both technology development and commercial implementation typically requires significant investment of time. This latter factor is significant where the metal/ mineral of interest is a commodity that exhibits...
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...EXTERNAL ANALYSIS of the PHILIPPINES Filipinos are food lover. Filipinos do not consider it a meal if rice is not served. Plain steamed rice is the basis of the diet. Three crops a year are harvested to provide enough rice for the population, and the government keeps surpluses stored for times of drought. Salt water and freshwater of fish and shellfish are eaten daily, served either fresh or salted. Fish, chicken and pork are usually fried, although people are becoming more health-conscious and often choose alternative methods of cooking. Garlic is added to food because it is considered healthful. Filipino food is not spicy. All food is cooked on gas burners or wood or charcoal fires and is allowed to get cold before it is eaten. Rice is cooked first, since it takes longer. When it is ready, rice will be placed on the table while the next items of the meal are prepared and served. Table knives are not used. Forks and spoons are used for dining. The food is eaten from a spoon. The traditional method of placing food on a banana leaf and eating with one's hands is also used throughout the country. It is acceptable to eat food with one's hands at restaurants as well as in the home. Breakfast is served at 6 A.M. and consists of food left over from the night before. It is not reheated. Eggs and sausage are served on special occasions. Small buns called pan de sol may be purchased from vendors early in the morning. At midmorning and in the afternoon, people eat merienda. Since Filipinos...
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... legal and political processes, demographic factors, available resources, the international environment and the general economic, social and industrial structure of the country. - Micro environment (task environment): concerns the forces relevant to an individual organisation within an industry including customers, suppliers, competitors, regulators, the local labour market and specific technologies. The business environment is the climate in which the business methods, skills, attitudes and objectives are being increasingly adopted by these organisations. (Ian Worthington, 2003). To understand the organisational purposes of business, we have to study the environment of one company in particular. Anglo American is one of the world’s largest mining companies focusing on platinum group metals, diamonds, copper, nickel, iron ore, metallurgical and thermal coal. This company is...
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...The central economic problem is how to match finite resources with unlimited wants. With the demand for resources rising as the world economy grows this is becoming more of a challenge. Leading global companies like Anglo American strive to find new solutions to this problem every day. Anglo American is one of the world’s largest mining companies. Its portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in platinum and diamonds, base metals (copper and nickel) and bulk commodities (iron ore, metallurgical coal and thermal coal). The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. The purpose of the organisation is set out in a mission statement. In 2008 there was a downturn in world economic activity. This resulted from a loss of confidence in the world financial system. The downturn led to a steep fall in commodity prices such as coal, copper and platinum. By late 2009 these prices started to rise again as demand for commodities increased. Although mining companies are affected by changes in economic activity, mining is a long-term investment business. Firms like Anglo American have to take a long term view of the business. This involves extracting commodities in a sustainable way over a long period of time. The company focuses on those commodities in which it has a favourable position....
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...SUMMER INTERNSHIP REPORT A REPORT ON Steel Price Fluctuations and its Determinants and its Correlation with Different Factors Submitted By- Ajaya Kumar Mall (10BSPHH010049) INDIAINFOLINE LIMITED A Report On Steel Price Fluctuations and its Determinants and its Correlation with Different Factors Submitted by: Ajaya Kumar Mall (10BSPHH010049) A report submitted in partial fulfillment of the requirements of MBA program of IBS Hyderabad INDIAINFOLINE LIMITED Distribution List: Prof. C. Padmavathi Mr. Khamis Raza Taqvi Faculty Guide Company Guide Dept. Of Finance Asst. Vice President IBS Hyderabad IndiaInfoline Limited Date of Submission: 13th May, 2010 AUTHORIZATION This report has been prepared under the guidance of Mr. Khamis Raza Taqvi, Associate vice President of IndiaInfoline Limited, Mr. Sachin Jain, Team Manager, IndiaInfoline Limited and Dr C Padmavathi, Department of Finance, IBS Hyderabad. This report is submitted as partial fulfillment of the requirement of MBA Program of IBS Hyderabad. Date: 13 May, 2011 Ajaya Kumar Mall ...
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...in terms of a credit rating of BBB (low). The justification for this rating follows: a) Higher than average profitability of the industry – related to the need to provide adequate returns on large capital investments b) Threat of competitors is about on the same level as other industries – based on multiple suppliers and buyers and the prevalence of homogenous products (nonbranded) c) Inherent volatility in earnings and underlying cash flows – due to volatile pricing of commodity products and responsiveness to economic cycles d) Above average and increasing prospect of industry regulation e) Above average and uncertain political risk – industry players have to pursue operations where mineral resources are found and in many cases this would include politically unstable regions f) Below average technology risks – due to the basic nature of the materials produced and licensing production technologies and methods among players in the industry 2 The BBB rating is applicable only to industry players that do not have major weaknesses in terms of scale, diversification, cost competitiveness, and operating and financial track record. Major players in mining industry are all strong in these considerations. Consequently, individual companies might have a rating above the BBB industry average rating. This would apply to VALE and its closest peers. Industry Profitability and Cash Flows...
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...in terms of a credit rating of BBB (low). The justification for this rating follows: a) Higher than average profitability of the industry – related to the need to provide adequate returns on large capital investments b) Threat of competitors is about on the same level as other industries – based on multiple suppliers and buyers and the prevalence of homogenous products (nonbranded) c) Inherent volatility in earnings and underlying cash flows – due to volatile pricing of commodity products and responsiveness to economic cycles d) Above average and increasing prospect of industry regulation e) Above average and uncertain political risk – industry players have to pursue operations where mineral resources are found and in many cases this would include politically unstable regions f) Below average technology risks – due to the basic nature of the materials produced and licensing production technologies and methods among players in the industry 2 The BBB rating is applicable only to industry players that do not have major weaknesses in terms of scale, diversification, cost competitiveness, and operating and financial track record. Major players in mining industry are all strong in these considerations. Consequently, individual companies might have a rating above the BBB industry average rating. This would apply to VALE and its closest peers. Industry Profitability and Cash Flows...
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...MASTERPLAN ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT 2011-2025 R EPUBLIC OF I ND ON ES IA Doc. Wijaya Karya Masterplan for Acceleration and Expansion of Indonesia Economic Development © Copyright Coordinating Ministry For Economic Affairs, Republic of Indonesia Published by Editor Design by : Coordinating Ministry For Economic Affairs : Deputy Minister for Coordinating Infrastructure and Regional Development, Coordinating Ministry For Economic Affairs : IndoPacific Edelman First Published 2011 All Rights Reserved Coordinating Ministry For Economic Affairs, Republic of Indonesia Masterplan for Acceleration and Expansion of Indonesia Economic Development Jakarta: Coordinating Ministry For Economic Affairs, 2011 212 pages; 28 x 30 cm ISBN 978-979-3754-14-7 Masterplan aCCeleratIOn anD eXpansIOn OF InDOnesIa eCOnOMIC DeVelOpMent 2011-2025 Coordinating Ministry For Economic Affairs Republic of Indonesia 6 Masterplan P3EI Abstract Doc. Astra Otoparts Doc. Wijaya Karya Doc. Wijaya Karya Table of Contents Preface from The President of Republic of Indonesia Abstract Historical Breakthrough in the Making of MP3EI 1. The Self-Sufficient, Advanced, Just, and Prosperous Indonesia A. Preface B. Acceleration and Expansion of Indonesia Economic Development C. Indonesia’s Position Within The Regional and Global Dynamics D. Indonesia’s Potential and Challenges E. Acceleration of Economic Transformation - A New Way of Working...
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...50th Anniversary Edition I, Pencil My Family Tree as Told to Leonard E. Read FOUNDATION FOR ECONOMIC EDUCATION 30 South Broadway Irvington-on-Hudson New York 10533 1-800-960-4FEE • 914-591-7230 www.fee.org “I, Pencil” is a superb case study of free markets in action. Half of the world’s economic problems would vanish if everyone would read “I, Pencil.” Burton W. Folsom, Jr. Professor of History Hillsdale College b There is no better, more easily understood, and more fun explanation of the complexity of markets than Leonard Read’s “I, Pencil.” It ought to give considerable pause when we listen to the arrogance of politicians who tell us they can manage an economy better than millions, perhaps billions, of independent decision makers in pursuit of their own personal goals. Its message to would-be planners is to bug out! Walter E. Williams John M. Olin Distinguished Professor of Economics George Mason University b The most valuable truths about economics and liberty can be found in a lowly lead pencil. When my children are old enough, I will read them a classic little essay by the late philosopher Leonard E. Read that turns a mundane writing instrument into an elementary lesson about free-market capitalism. Michelle Malkin Syndicated columnist b I, Pencil My Family Tree as Told to Leonard E. Read Introduction by Lawrence W. Reed Afterword by Milton Friedman This edition of “I, Pencil” is dedicated to our late esteemed colleague, Beth A. Hoffman,...
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...ratio of the value of the stock of mineral resources to the remaining reserve lifetime (capped at 25 years). It covers tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. At first glance, sustainability and mineral resource development appear to be in conflict. Mining depletes finite resources and in a strict sense, therefore, is inherently unsustainable. For instance, there is only a finite amount of copper in the earth’s crust, and each unit of copper extracted increases the fraction of the total copper resource base that is in use. Thus, it can be argued that if we continue to mine we will eventually exhaust the available supply of minerals. This perspective, however, ignores the dynamics of mineral supplies. In practice the non-renewable character of minerals may be less constraining than it might seem. Five factors make the benefits from mining much more sustainable than they initially appear to be. First, through the process of exploration and development, mining companies continually reinvigorate, augment, or “sustain” their reserves. Current reserves represent only a small portion of the mineral resources remaining in the earth’s crust. Exploration and development lead to the discovery and proving up of previously unknown mineral deposits and—perhaps just as important—additional reserves at existing mines and known deposits. Technological...
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