Frik Els , Editor

The Globe & Mail reports local authorities in the Pakistani province of Balochistan refused to meet Tethyan Copper, a joint venture between Chile’s Antofagasta and Barrick Gold, for talks before rejecting a bid for one of the world's richest deposits of gold and copper at a remote site in the dry hills near the Afghan-Pakistan border, known as Reko Diq. Tethyan Copper said a “summary decision” by the restive province to reject a mining lease application for its Reko Diq project breached local rules and Pakistani law and has now filed a "notice of dispute." The company submitted a feasibility study earlier this year that indicated 22 billion lb of copper and 13 million oz of gold at the site. The Balochistan decision now paves the way for a Chinese consortium to construct a mine and processing facility.

Marketwatch reports China’s leading market for precious metals trading increased its silver margin requirements Friday to a fresh high amid heightened volatility in precious metals. The Shanghai Gold Exchange lifted silver margin requirements to 18% of a contract’s value, up from 15% previously, according to data provided by ScotiaMocca, the metals unit of Scotia Capital. In morning trade in New York silver for December delivery was up 1.2% at $31.90 an ounce after retreating in East Asia and recovering from a 7% tumble on Thursday. Yesterday a Reuters poll predicted silver at $50/oz at the end of next year, exceeding the $48.61 record high set in April.

Aurico announced on Friday open pit pre-production development has commenced at its Young-Davidson project after the company completed the first open pit blast on Thursday. Commissioning of the Young-Davidson mine project remains on schedule with the first gold pour anticipated for the end of March 2012. The 100%-owned Young-Davidson gold mine in northern Ontario is expected to produce 200,000 ounces per year by 2015. AuRico Gold has projects in Canada, Mexico and Australia and five operating properties including the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State, the El Cubo mine in Guanajuato State, as well as the Fosterville and Stawell gold mines in Victoria, Australia.

The International Energy agency says in its World Energy Outlook 2011 released last week, widespread deployment of more efficient coal-fired power plants and carbon capture and storage (CCS) technology could boost the long-term prospects for coal, but there are still considerable hurdles. The agency says more efficient technology for new coal power plants would require relatively small additional investments, but improving efficiency levels at existing plants would come at a much higher cost. The IEA says If CCS is not widely deployed in the 2020s, an "extraordinary burden" would rest on other low-carbon technologies to deliver lower emissions in line with global climate objectives. Today only two small pilot projects in Germany and the US exist and a $4.8 billion project in the UK, which would be the world's largest appears to be going nowhere.

Gold futures for December delivery dropped 3.2%  or $57 to $1,717.30 an ounce on the Comex division of the New York Mercantile Exchange by early afternoon on Thursday. Gold's weakness flies in the face of new data from the World Gold Council showing investment demand at record highs and voracious jewelry demand from China, and investment bank Morgan Stanley picking gold as its top commodity for 2012 and predicting a price of $2,200 an ounce in the first half.

According to the World Gold Council’s Gold Demand Trends report for the third quarter 2011 released today, demand reached 1,053.9 tonnes, an increase of 6% compared to the same period last year. This equates to $57.7bn, an all-time high in value terms. The increase was driven by investment demand which rose by 33% year-on-year to 468.1 tonnes, generating record quarterly demand of $25.6bn, and came despite a steep drop-off Indian jewellery demand which was down 26% thanks to disappointing Diwali sales.Chinese jewellery demand was 13% higher year-on-year at 131.0 tonnes and topped Indian sales for the first time as Chinese jewellers expand outside the bigger cities.

A new European study says supply shortfalls of rare-earth elements over the next two decades put at risk the EU's ambitious plans to expand the production of solar, wind and green transport technologies and implement carbon-capture systems. According to the EU's Joint Research Centre, solar will require half the current world supply of tellurium and 25% of the supply of indium, while Europe’s wind energy programme which is supposed to power all of the continents 240 million households within 20 years need a steady supply of neodymium and dysprosium. China controls 95% of the globe's rare earth output in 2010 produced more solar panels than the rest of the world combined.

The price of US crude oil broke through the psychologically important $100/barrel level on Wednesday after news of a pipeline deal that will relieve the oil glut in Cushing, Oklahoma, the pricing point for US crude. The US benchmark crude price West Texas Intermediate is now up more than a third from year-lows of $76 struck in early October. On top of the almost 3% move higher to $102 on Wednesday, the gap between WTI and the international benchmark price, Brent, reduced dramatically. From a record margin of $26.87 early September, WTI is now less than $10 cheaper. At the same time the discount on Western Canada Select narrowed 55 cents to $11.40/barrel meaning oil sands producers now get more than $90 per barrel for their heavy oil for the first time since June.

The Economic Times reports gold and diamond jewellery sales across India fell by 25-30% in grammage terms during Diwali due to rising gold prices and a noticeable shift to coins and bars, said a leading industry body which represents 300 000 jewellers. India is world's number one gold jewellery market and the sales figures can be seen as a setback for the industry. In August the World Gold Council said despite a higher gold price, Indian demand grew 38% during Q2 2011 compared to the same period of 2010 and will continue to expand for the rest of the year.

Gold traders and analysts are the most bullish in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis. Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004. Holdings in exchange-traded products backed by gold rose 27.5 metric tons this week, within 1% of the record set almost three months ago. On Friday, gold snapped a 2-day losing streak adding $29 to trade just under $1,790. The gold price peaked above $1,900 at the end of August.