Washington deal extended

The period ended March 9 was punctuated by the European central banks’ renewal of the Washington agreement on gold sales, which had been due to expire later this year.

Twelve European central banks have committed to limiting their gold sales to a collective 500 tonnes per year for the next five years, beginning Sept. 27. Britain’s central bank declined to participate in the new pact but stated it has no more plans to sell gold from reserves.

While the timing of the decision was not expected, the 500-tonne figure was in line with expectations, and so gold prices barely flickered in response and ended the period at US$402.80 per oz.

Nonetheless, the gold majors dominated the most-active list, with Newmont Mining rising US$1.19 to US$43.45, Barrick Gold advancing US$1.58 to US$21.60, Durban Deep jumping US31 to US$3.38, Freeport-McMoRan Copper & Gold slipping US12 to US$42.29, and Placer Dome shooting up US57 to US$17.03.

There was more action in the aluminum market this week, with Brazilian iron ore miner CVRD agreeing to buy bauxite from Guyana’s Aroaima Mining in order to help boost alumina production at its Alunorte facility. CVRD, which sank US$4.48 to US$55.61, will also help Aroaima examine ways to ramp up its bauxite output.

Rising 84% to US68, the top percentage gainer in the U.S. was Vancouver-based Pine Valley Mining (formerly Globaltex Industries), which is in the later stages of starting up its wholly owned Willow Creek coal project. Willow Creek will be the first new mine in British Columbia in 20 years to produce and ship coal.