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Saturday, October 24, 2009
SYDNEY -(Dow Jones)- Newmont Mining Corp. (NEM) has started up its Boddington gold mine in Western Australia with a slight delay due to wet weather and falling workers' productivity, the world's second largest gold miner said in its second quarter results Friday.
"(The) planned startup is continuing, despite being adversely affected by wet weather and a recent decline in contracted workforce productivity associated with the industrywide economic slowdown," Newmont said in a statement.
At full production, Boddington, about 130 kilometers southeast of Perth, will be Australia's largest gold mine, and ramp up is expected to take 12 months. Eventual capital costs are expected around US$2.6 billion to US$2.9 billion.
The mine will produce around 1 million troy ounces during its first five years of operation at average cash costs of US$300/oz including byproduct credits.
In June, Newmont bought the remaining 33.33% interest in the project it didn't already own from AngloGold Ashanti Ltd. for about US$1.1 billion.
-By Elisabeth Behrmann, Dow Jones Newswires
Lightweight jewels shine as gold gets costlier
With gold prices now scaling new highs and affecting the demand for jewellery, manufacturers are devising new ways to propel demand and attract customers. Today, lightweight jewellery seems to be in vogue and new designs that fuse gold and diamond with other metals like steel, tungsten, titanium form the new offering. Jewellers are also making use of coloured stones to make affordable pieces of jewellery pieces in an attempt to revive demand. The price of gold is up by over 20% at Rs 15,000 per 10 gram levels compared to last years’ average price of Rs 12,147. Demand for gold has taken a hit in India, a market that is considered price-sensitive . According to estimates from the World Gold Council, demand for the first quarter of the current year fell 83% to 17.7 tonnes compared to the corresponding period last year. Vinod Hayagriv, Chairman, All India Gems & Jewellery Trade Federation says there is fluctuation in gold purchases apart from a drop in the quantum of gold being purchased. “I have seen few companies who are moving towards offering the option of diamond jewellery studded in metals like steel, titanium, tungsten,” he said. He is quick to add that these metals cannot be used as a replacement for gold but are instead added in the jewellery portfolio of companies . Mr Hayagriv’s jewellery outlets, C Krishniah Chetty & Sons has been offering diamond jewellery studded in high end steel with one to 40 pieces of diamonds. “They are in the price range of Rs 3,500-15 ,000 and are always a part of diamond portfolio,” Mr Hayagriv adds. Mumbai based KT Group, the promoters of prominent gold chain brand “Chain N Chains” , Timond luxury watches and Raa diamond Jewellery will soon launch their fusion jewellery brand , ‘Arma.’ K T Group chief operating officer Tejas Soni said the company has used 316L (low carbide ) high end steel. “The use of imported steel from Taiwan with gold and diamond brings down the cost. This range is sold in the Rs 1000-Rs 5000 price range,” he said. Arma Jewellery will carry a 18 carat gold and 3-4 pieces of diamond and steel. The hallmark jewellery comes with a buy-back guarantee at 50% of its value and will be made available in 500 retail outlets in two years. Most jewellers, like those in Mumbai’s Zaveri Bazaar have increased their inventories for light weight jewellery and jewellery that uses coloured stones. Coloured stones, they say, reduce the content of gold and brings down the costs. Deepak Tulsiani from Dwarkadas Chandumal Jewellers says that even the concept of hollow casting is gaining ground as it makes jewellery look heavy while it is actually hollow from inside and is less expensive
"(The) planned startup is continuing, despite being adversely affected by wet weather and a recent decline in contracted workforce productivity associated with the industrywide economic slowdown," Newmont said in a statement.
At full production, Boddington, about 130 kilometers southeast of Perth, will be Australia's largest gold mine, and ramp up is expected to take 12 months. Eventual capital costs are expected around US$2.6 billion to US$2.9 billion.
The mine will produce around 1 million troy ounces during its first five years of operation at average cash costs of US$300/oz including byproduct credits.
In June, Newmont bought the remaining 33.33% interest in the project it didn't already own from AngloGold Ashanti Ltd. for about US$1.1 billion.
-By Elisabeth Behrmann, Dow Jones Newswires
Lightweight jewels shine as gold gets costlier
With gold prices now scaling new highs and affecting the demand for jewellery, manufacturers are devising new ways to propel demand and attract customers. Today, lightweight jewellery seems to be in vogue and new designs that fuse gold and diamond with other metals like steel, tungsten, titanium form the new offering. Jewellers are also making use of coloured stones to make affordable pieces of jewellery pieces in an attempt to revive demand. The price of gold is up by over 20% at Rs 15,000 per 10 gram levels compared to last years’ average price of Rs 12,147. Demand for gold has taken a hit in India, a market that is considered price-sensitive . According to estimates from the World Gold Council, demand for the first quarter of the current year fell 83% to 17.7 tonnes compared to the corresponding period last year. Vinod Hayagriv, Chairman, All India Gems & Jewellery Trade Federation says there is fluctuation in gold purchases apart from a drop in the quantum of gold being purchased. “I have seen few companies who are moving towards offering the option of diamond jewellery studded in metals like steel, titanium, tungsten,” he said. He is quick to add that these metals cannot be used as a replacement for gold but are instead added in the jewellery portfolio of companies . Mr Hayagriv’s jewellery outlets, C Krishniah Chetty & Sons has been offering diamond jewellery studded in high end steel with one to 40 pieces of diamonds. “They are in the price range of Rs 3,500-15 ,000 and are always a part of diamond portfolio,” Mr Hayagriv adds. Mumbai based KT Group, the promoters of prominent gold chain brand “Chain N Chains” , Timond luxury watches and Raa diamond Jewellery will soon launch their fusion jewellery brand , ‘Arma.’ K T Group chief operating officer Tejas Soni said the company has used 316L (low carbide ) high end steel. “The use of imported steel from Taiwan with gold and diamond brings down the cost. This range is sold in the Rs 1000-Rs 5000 price range,” he said. Arma Jewellery will carry a 18 carat gold and 3-4 pieces of diamond and steel. The hallmark jewellery comes with a buy-back guarantee at 50% of its value and will be made available in 500 retail outlets in two years. Most jewellers, like those in Mumbai’s Zaveri Bazaar have increased their inventories for light weight jewellery and jewellery that uses coloured stones. Coloured stones, they say, reduce the content of gold and brings down the costs. Deepak Tulsiani from Dwarkadas Chandumal Jewellers says that even the concept of hollow casting is gaining ground as it makes jewellery look heavy while it is actually hollow from inside and is less expensive
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