Gold investment demand to continue - Murenbeeld, Miranda to list South African coal assets in Australia, African Eagle to develop JV gold mine in Tanzania

The growth in investment demand for gold is still in its "early days", and the price of the precious metal is not in a bubble, Dundee Wealth economist Martin Murenbeeld told delegates at the Canadian Institute of Mining, Metallurgy and Petroleum conference, in Vancouver.

Like other market watchers, Murenbeeld pointed to the fact that, on an inflation-adjusted basis, the gold price, which set new records above $1 200/oz last week, still has a way to go before topping the lofty levels reached in January 1980, which would equal about $2 300/oz in today's money.

He believes that the 1980 record will be breached on an inflation-adjusted basis. Murenbeeld is not concerned about declining jewellery demand, as he is convinced that investment demand for the metal will remain strong.

His views are in contrast with those of researchers at metals consultancy GFMS, which has raised concerns over the market's reliance on investment demand. To watch a video on Murenbeeld, go to www.miningweekly.com and click on ‘Multimedia' and then on ‘Video Clips'.

The South African coal assets of the JSE-listed Miranda Mineral are to be hived off into a separate ASX listing at a time of the threat of a new super profits tax in Australia. Undaunted by the looming tax, Miranda CEO Ron Nel said that the board would, however, be seeking professional advice on the tax.

The separate listing will take place as the company opens its first mine in the KwaZulu-Natal coalfields. Miranda assets were divisionalised into coal, diamonds, base and industrial minerals, and precious metals, after their JSE listing as a portfolio of mineral rights and their unbundling out of the former diversified Gold Fields group.

The company's primary business is that of mineral exploration and the identification of economically viable prospects for mining. The decision to list Miranda Coal in Australia was taken after investigating the most suitable regional domain, the valuation premium to be obtained and the quantum of capital available in the different markets.

Aim- and AltX-listed mining junior African Eagle plans to form a joint venture (JV) with diversified minerals group Macquarie Harbour Mining to develop the Miyabi gold project, in Tanzania - again in the face of the punitive new Tanzanian Mining Bill.

African Eagle said last week that Macquarie wants up to 75% of African Eagle's interest in the project, which has an indicated 71% and an inferred 29% com- pliant resource of 12,2-million tons at 1,3 g/t of gold. Macquarie will provide the technical expertise and funding for a feasibility study.

African Eagle will retain 25% of its interest in the project and its past exploration expenditure will be credited against the development costs.

African Eagle is also undertaking a prefeasibility study at its Dutwa nickel project, in Tanzania, which it hopes to complete by the end of the year.