Solid Minerals
Gold hits three-month high, shares up ahead of Yellen
LONDON – Gold hit a three-month high and global shares rose on Tuesday as investors wagered that the new head of the U.S. Federal Reserve would renew the bank’s pledge to keep policy ultra-easy at her first testimony to Congress.
Fed Chair Janet Yellen is likely to face questions on the state of the labor market and the future pace of tapering when she appears before the House Financial Services Committee at 10.00 a.m. ET. Her testimony will be released at 8.30 a.m. ET.
Dealers said the latest betting was that while the tone was likely to be upbeat on the economy, Yellen would emphasize that interest rates were set to remain near zero for some time.
“The Fed will want to hold the market’s hand as much as possible over this period so they will be extremely keen to try and comfort the market in any way they can,” said Stewart Richardson, partner at macro hedge fund RMG Wealth Management.
“At the moment this is taking the form of ‘don’t worry interest rates will remain low for an extended period’.”
Just that hope was enough to lift gold 0.7 percent to 1,283.70, just off its highest level since mid-November, hit earlier in the session. U.S. gold futures gained for a fifth day in a row, their longest winning streak since August 2012.
The dollar fell to its lowest level in almost two weeks against the euro and a basket of major currencies.
“(Yellen)’s known as a dove, but it’s the first time the question (arises) of whether she wants totally to continue this line from her predecessors or shake things up,” said Simon Smith, FxPro’s head of research. “I don’t think she will (shake things up), but it’s a bit of a risk event for the dollar.”
The FTSEurofirst 300 index of European shares rose 0.8 percent, with strong updates from car maker BMW and measurement technology group Hexagon adding to the positive sentiment.
The broader MSCI All-Country World Index was up 0.4 percent and U.S. stock futures were also trading firmer with the S&P 500 e-mini contract up 0.5 percent.
Oil prices also rose, with Brent crude edging above $109 a barrel.
FED THEATRE
Analysts have generally assumed Yellen will stick with the script and reiterate that the Fed will continue to scale back its asset buying as long as the economy improves as expected.
“The market is more ready to be relieved than to cheer on Yellen’s comments, which are expected to clarify uncertainties about the Fed’s tapering pace and interest rate hike plans,” said Mirae Asset Securities analyst Chung Seung-jae in Seoul.
“In the absence of a Fed meeting in February, her testimonies are seen as the biggest risk event for the month.”
One argument for staying the course on tapering is that bond investors have learned to live with the idea after fears that interest rates would rise led to bouts of selling last year.
Yields on U.S. 10-year Treasury paper have settled back at 2.67 percent, well below recent highs of 3.04 percent and less of a threat to the housing market.
Investors, too, have accepted that tapering is not the same as tightening and have pushed out the timing of the first actual hike in the Fed funds rate. A move is not fully priced in until late 2015, a view Yellen is likely to endorse.
– REUTERS
The Nigerian Government has threatened to come down heavily on foreigners sponsoring bandictory as a way of sustaining illegal mining activities in parts of the country.
The warning was handed down in Abuja by Minister, Solid Minerals Development, Dr Oladele Alake, while receiving a delegation of the Nigeria-China Chamber of Mines led by its National President, Dr. Olugbenga Ajala.
Details of these were contained in a statement released by Head, Press & PR, Ministry of Solid Minerals Development, Alaba Balogun over the weekend.
The statement cited, Dr Alake, thus, “The government will come down firmly on these unscrupulous foreign operators sponsoring banditry to perpetrate illegal mining: let me use this medium to appeal through you to tell those sponsors to desist or face the full wrath of the law.”
According to Dr Alake, the Ministry is committed to establishing a multi-agency task force that will end the activities of illegal miners and their collaborators.
The Minster made it clear that the FG had given illegal miners a 30-day-ultimatum to legitimise their businesses, quit Nigeria or incur the wrath of the law.
According to him, this will help “to streamline and structure the Small-Scale Artisanal Miners for maximum yield to the Federal Government.”
The delegation paid a courtesy call on the Minsiter at the Ministry’s headquarters in Abuja.
By Edozie Obasi-Eze
Amidst heightening uncertainties in the domestic petroleum products market characterised by scarcity and irregular pricing, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that there’s no intention to review pump prices upwards.
This was contained in an advisory issued by General Manager, Corporate Communications, NMDPRA, Kimchi Apollo.
He stated that the Nigerian National Petroleum Corporation Limited (NNPCL) had imported PMS with current stock levels sufficient for 34 days.
In an attempt to address panic buying and speculations which have seen price of Premium Motor Spirit (PMS) oscillate between N180-N250 in the Lagos area, Apollo assured that there was enough quantity of the product in the country already.
He said, “Consequently, marketers and the general public are advised to avoid panic buying, diversion of products and hoarding.
“In keeping with the Authority’s responsibilities as outlined in the Petroleum Industry Act (PIA), the Authority assures the public that it would continue to monitor the supply and distribution of petroleum products nationwide, especially during this holiday season.”
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says it is verifying and reconciling revenue collections in the Solid Minerals Sector of the economy.
The Federal Commissioner, RMAFC, Chief Tokunbo Ajasin, stated this at a strategic meeting on the commission’s 2022 nationwide monitoring of revenue collections of the Nigerian mining sector in Akure on Monday at the state Ministry of Finance Conference Hall.
This is contained in a statement by Mr Banjo Egunjobi, the Head of Media Unit of the ministry.
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Ajasin said 25 enterprises exported minerals in 2019 with no record of royalty payment, while about N2.76 billion outstanding liabilities had been established against 2,119 mining companies nationwide.
He said that this arose from failure to pay the Annual Service Fees for their company titles.
According to the Federal Commissioner, the Commission is empowered to monitor all revenue accruals from the extractive industries to ensure prompt and accurate remittances to the Federation Accounts.
He added that the monitoring was a follow-up on the 2016 exercise to assess the challenges hindering optimum revenue collection from the sector.
Ajasin said the monitoring comprised revenue collections and the activities of miners in the state.
According to him, the major issues of concern to the Commission is the Nigeria Extractive Industries Transparent Initiative NEITI 2020 report.
He added that the number of defaulting companies would be determined after engagements.
“There is also the issue of underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments.
“These companies owe the government about N482 million in overdue royalty.
He said the 2,119 mining companies’ default nationwide arose from the failure to pay the annual service fees for their respective mineral titles.
Ajasin also said the Commission’s mandate in the extractive sector was to recover the established liabilities owed to the Federation Account.
He, therefore, urged participants to explore the opportunities in the state to harness the revenue potential in the Solid Minerals sector to boost Internally Generated Revenue.
The State Commissioner for Finance, Mr Wale Akinterinwa, stated that the process of allocating the 13 per cent derivation on crude oil paid to the states across the federation depended on the effective monitoring of revenue and the collection of established liabilities from mineral resources.
Akinterinwa noted that the cooperation given by the state Ministry of Finance, Ministry of Energy, Mines and Mineral Resources and others to enforce payment of the reported liabilities would assist in fulfilling the objectives of the exercise and a means of engaging some Strategic Revenue Drive for the state.
The commissioner said the present administration of Gov. Oluwarotimi Akeredolu would do everything at its disposal to facilitate the collection of revenue as listed in the NEITI Audit Report 2022.
He, therefore, urged stakeholders to accord full cooperation to the RMAFC team and be committed to achieving the desired goal.
Also the Permanent Secretary of the Ministry, Rev. Jide Ekpobomini, said sourcing for a quick alternative to all income was necessary and could not be overemphasised.
He said government revenue inflows would surely be boosted if the sector was vigorously harnessed.
Also his counterpart from Ministry of Energy, Mines and Mineral Resources, Mr Wemimo Ogunsanmi, said the state government had initiated a strategic mineral development plan to exploit the solid minerals sector, hence the establishment of the ministry.
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