Excerpt from report by Uzbek UzReport.com web site on 25 May This year sees the 35th anniversary of the commissioning of Muruntau [in central Uzbekistan], the world's largest gold field. Over 1bn cubic metres of rock have been processed at the gold field during these years.
A total of 57 tonnes of gold were obtained from ore extracted at the gold field in 2001, the Navoi integrated mining and metallurgical plant has told [the Uzbek] Turkiston Press [news agency].
The use of an automated work planning system that processes information from US satellites at the gold field enabled the integrated plant to save about 500m dollars and postpone the refurbishment of Muruntau for at least 10 years.
The gold extraction plant belonging to the Navoi integrated mining and metallurgical plant extracts Muruntau gold ore and processes and refines it to 99.99-per-cent gold, "four nines" - gold of the highest purity.
[Passage to end omitted: Uzbekistan and the US company Newmont Mining Corporation have set up a joint venture, Zarafshan-Newmont, to extract gold from waste at the integrated plant - known]
Dubai gold trade to get major boost Dubai |By A Staff Reporter | 27-05-2002 Print friendly format | Email to Friend
The newly formed Dubai Gold Management Committee (DGMC) is designing a complete operating model for gold trade at the recently launched Dubai Metals and Commodities Centre.
The committee met recently to discuss its objectives and ongoing development of the centre which was announced by General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Defence Minister.
The committee discussed the short and long term goals, objectives and future developments of the project, including all facilities and integrated services it could bring to the companies and organisation working in the gold and precious metals domain.
The committee consists of reputed names from the local, regional and international organisations related to gold trading.
Chaired by Smeeton, the other members are Tawfique Abdullah, Mohammad Shakarchi, Chandu Siroya, Moaz Barakat, Sunil Kashyap, Yusuf D. Nonoo, Kishore Dhakan, Harish Pawani, Jeffrey, D. Rhodes, Hamed Kazim and Adel Al Shirawi.
·Gold retailers struggle to honour margin calls Dubai |By C.L. Jose | 27-05-2002 Print friendly format | Email to Friend
The consistent rally witnessed in the gold price during the last couple of weeks has revived memories of 1999 September-October period when several small to average-sized gold traders had to struggle in order to honour the margin calls from wholesalers.
Gold closed $321.35 an ounce on Saturday, creating a two and half year record. According to a top gold trader, if the price doesn't stabilise within a few days, many in the trade would find it difficult to raise the margin on the 'unfix' trade arrangement they have entered with wholesalers.
"More money is currently going towards the excess margin. And hence the stock replenishment has taken a backseat," a jeweller who has been running an outlet in Dubai for the last couple of years revealed.
The main reason being cited for the current rally in the gold price is the weakening dollar. "The dollar and gold always maintain an inverse correlation as far as the value is concerned, meaning that when dollar is strong, gold eases, and vice verse," said an expert from the World Gold Council.
Retailers procure gold from the wholesalers through 'unfix' and 'fix' pricing arrangement, whereby the former offers the trader an opportunity to settle the payment on a future date when he is comfortable with the gold price.
However, to avail this flexibility of settlement, he has to pay the price upfront along with a 10 per cent of the value of purchase, as margin.
In case of an increase in the price thereafter, the retailer has to make sure that the price difference is paid to the wholesaler as and when the retailer gets the 'margin call'. There are several retailers in Dubai who have been paying this excess margin regularly for the last couple of days.
But the question being asked by the retailers is how long will they have to keep paying this excess margin. In the case of a default in the margin payment, the wholesalers can wrap up the trade with the margin money he has collected from the retailer. But the retailer will be left without any chance make use of any drop in the price.
The retailers are waiting for the price to drop so that they can capture the opportunity and the settle the payment at that price. There are smart retailers who make money by capitalising on a price fall during the course.
"But this time around there was no volatility in the price, and the price instead kept going up," another trader noted.
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