Chinese regulators remain adamant about keeping commodities from becoming speculative casinos there and Glencore is attempting to sell one of its biggest gold mines while prices are still high.
Chinese Regulators Tamp Down Speculation
Chinese regulators appear to have successfully popped a mini-bubble for now in steel and other commodity futures, scaring off speculators who piled in last month to drive steep gains in the prices of raw materials from coal to cotton.
China has vowed that it won’t allow its commodity futures markets to become a hot-bed for speculators, fearing that price movements not based on fundamentals could skew investment decisions and hamper efforts to rein in overcapacity, Reuters reported.
Glencore Looks to Sell Mine
Mining company Glencore is considering selling its Vasilkovskoye gold mine in Kazakhstan, sources close to the deal said on Tuesday, confirming an earlier report in the Financial Times. The sources said the assets were worth more than $2 billion. “A sale is one of the options,” one source said, speaking on condition of anonymity.
The sale of Glencore’s 70% stake in the mine would help the company pare down its near-$26 billion net debt load.