Blog

Today, the Fraser Institute — which is not only Canada’s leading free-market
think tank, but also employs two of American Resources’ distinguished subject-
matter experts, Fred McMahon, and Jean-Francois Minardi — released the 2011
iteration of their annual Economic Freedom of the World report, available at
www.freetheworld.com.

The study looks at how the interplay of personal choice, voluntary exchange
coordinated by markets, freedom to enter and compete in markets, and protection
of persons and their property promotes investment, income and growth, improves
the general living conditions of a society, and helps foster peaceful relations. In the
2011 Report, Hong Kong is listed as the most economically free country, followed by
Singapore and New Zealand. On the other end of the spectrum, Venezuela, Myanmar
and Zimbabwe feature the worst scores of economic freedom.

While the study does not make a detailed assessment on the issue of resource
development, it touches on the importance of resources to growth, arguing
that “given two economies with the same level of economic freedom and other
attributes, the economy that is in addition abundant in natural resources will tend
to grow faster.”

If you’re interested in a more in-depth discussion of resource-related issues, the Fraser
Institute also publishes an annual Survey of Mining Companies, which assesses how
mineral endowments and public policy factors affect exploration investment. And
for a current perspective on Quebec’s mining policy, here’s a piece from American
Resources’ expert and Fraser Institute scholar Jean-Francois Minardi.

A weaker-than-expected jobs report in the U.S. has seen the price of gold soar once again.   Gold’s surge and paper currency’s weakness may be related to Venezuelan President Hugo Chavez’s plans to shift up to $6.3 billion in U.S. dollars, euros and pounds sterling to banks in China, Russia and Brazil, and to repatriate almost all of Venezuela’s gold reserves held abroad.  The plan was announced last month on the heels of steps to nationalize the nation’s gold mining industry, ostensibly taken to combat illegal mining.

Venezuelan officials have argued that a weakening U.S. dollar, and the United States’ and European debt crises were contributing factors in the decision.

In all likelihood, Chavez, ill and often characterized as being paranoid, is acting out desperation. But whatever his real motives, his plans are yet another indicator that in the current climate, metals can trump paper as a global currency and store of value.

American Resources introduced itself to Capitol Hill staff this week, briefing Senate staff on Tuesday followed by a House briefing Wednesday.  I was joined by Laura Skaer of the Northwest Mining Association (NWMA), Betty Gibbs of the Mining & Metallurgical Society of America (MMSA), and Izzy LaBranch of NWMA’s “The More  You Dig” initiative. During (…) more

Well, you won’t see that headline atop of pieces like this one in the Alaskan press, but it’s a logical extension of policy actions like the one proposed to stop a copper/gold/molybdenum mine in Alaska.  In this case, we’re told that we can either allow the mine to proceed – or we can save the (…) more

Reuters reports that concern over the supply shortage of key Rare Earths elements has led policymakers in the U.S., the EU and Japan to schedule an early October meeting in Washington.  According to a U.S. Government source: Experts and officials will discuss …how to team up to develop high-tech goods – such as electric car (…) more

Buried in a piece at Mining.com about South Korea and Bolivia’s joint-venture to develop the latter nation’s significant lithium reserves – critical to lithium-ion batteries used in cell phones, laptops and electric cars – is this comment from Argentinean officials: Argentina is promoting the idea of an OPEC-like cartel for itself, Bolivia and Chile – (…) more

In an interview with The Critical Metals Report, analyst Rick Mills shares his thoughts on how cobalt is the “king of critical metals.” Increasingly indispensable as an industrial metal, in the development of green technologies, and in various critical defense applications, cobalt is one of only four metals or element groups to make all three recently (…) more

In today’s globalized world, it doesn’t take a seat at the decision-making table for one nation to influence another’s domestic policies – a near-monopoly on critical mineral resources will do.  A case in point is India, which, after a seven-year hiatus, is expanding its indigenous Rare Earth Element (REE) production over growing concerns that China (…) more

Our Director of Research, Sandra Wirtz, unearthed this piece from the Time Magazine online archives  – “Strategic Metal: #1,” dateline October 13, 1941 – just weeks before Pearl Harbor.  It inspired me to do a little research on my own, with an eye toward our present-day approach to strategic metals. With war raging in Europe, (…) more

The New York Times’ Keith Bradshear has taken a closer look at foreign manufacturers moving their production sites into China in an effort to mitigate reduced access to and increased cost for REEs – a development we covered on our blog here and here. The article underscores that rather than acting out of environmental concerns, (…) more