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Here comes a gold-backed currency? PNG aims to retain 30% of exported gold, may change currency pegs

ZZZZZ

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#1
PNG aims to retain 30% of exported gold, may change currency pegs

Jonathan Barrett

SYDNEY, Aug 19 (Reuters) - Papua New Guinea wants to retain at least 30% of the gold it currently exports as it transforms its economy under a new government leadership, the country’s commerce minister said on Monday.

PNG was the world’s 14th largest gold producer in 2018, according to the World Gold Council. Its assets include the Porgera gold mine, majority controlled by a joint venture between Barrick Gold Corp and Zijin Mining Group , which has a lease currently up for renewal.

PNG’s Minister for Commerce and Industry Wera Mori told an investor forum in Sydney that the resources-rich nation was developing policies to keep more of the commodities it produces in the country to improve its economy.

“We are in the process of developing the framework to retain at least 30% of our gold that we export every year,” Mori told an investment forum in Sydney.

Mori said that PNG would also consider pegging its currency, the kina, to gold, rather than the U.S. dollar.

PNG’s central bank currently fixes its currency to a narrow U.S. dollar band, propping up the kina’s value while creating a shortage of dollars available in the Pacific nation.

James Marape, the former finance minister who became PNG’s new leader in May after winning a vote in parliament, has put some of the world’s biggest resources companies on notice over a perceived lack of wealth flowing from their projects back to communities.

This includes sending a team to renegotiate its Papua LNG agreement with French oil major Total SA.

https://af.reuters.com/article/commoditiesNews/idAFL4N25F074
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Zed

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I doubt that they can afford to do that... there is a only three men and a pig working in PNG currently. :D

The TOTAL GDP = 1.6 Moz and they are talking about retaining 696,600 a year!

They ain't collecting enough tax to do that so they must be planning on stealing it!
 
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#3
Zijin Mining Group , which has a lease currently up for renewal.
They recently bought Continental Gold ( a week and a half ago)

The Buritica project, located in Colombia, has measured and indicated gold reserves of 165.47 tonnes and an inferred reserve of 187.24 tonnes, Zijin said.

Four employees of Colombia-focused Continental were killed in a single month last year, one near Buritica and the others at a different exploration site.

https://business.financialpost.com/...ing-to-buy-canadas-continental-gold-for-1-bln


The deal also requires Canadian and Chinese government approvals, Begin said.
Canada last year blocked a proposed C$1.5 billion takeover of construction company Aecon by Chinese state builder China Communications Construction Co Ltd on national security grounds.


Buritica, whose high-grade ore and hearty output estimates make it a rare find, is shaping up as a key test for the future of large-scale underground mining in Colombia, whose mostly unexplored mineral riches have miners rubbing their hands.
The company has suffered its share of security problems. Four employees were killed in a single month last year, one near Buritica and the others at a different exploration site.
Monday’s announcement comes after Zijin said in early November it would buy partner Freeport McMoran Inc’s copper-gold assets in Serbia for up to $390 million, to boost its resources of both metals.
 
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#4
I also read rumors regarding crypto currencies rather than the gold-backed standard being used. This could take some time, to say the least, and yet, it appears that they also have a lot of ''harvesting power'' in the world's third biggest country.
https://www.coindesk.com/highest-in-2-years-65-of-bitcoin-hash-power-is-in-china-report-finds

(this is a very recent article, the others are from last month, approximately)

https://moneyweek.com/518006/all-the-gold-in-china-money-and-power-goes-east/

I still struggle to believe that an authoritarian regime like China would want to cede control of its currency to gold, but if China really does have designs on the US dollar’s reserve currency status, gold is the way to do it. It’s not as though it won’t have enough. If ever there were a symbol of wealth shifting from west to east, it is this incredible amount of gold making its way to China. It almost certainly already has more gold than the US. How long before it makes the rules?




Until recently, China was against crypto currencies. They did decide to release their own in the near future according to some articles (around 2020) and this will create some turmoil in the economy.

Personally I think it is wiser to invest in trustworthy stocks instead of crypto, which is rather unstable and can vanish without a trace.

In times of recession, the price of gold rises and it is rather safer.

The lifting of the ban will take effect in 2020, which means more Chinese consumers will soon be exposed to the nitty-gritty of crypto asset mining and use, in preparation for the release of the People’s Bank of China’s official cryptocurrency.

Read more at https://ihodl.com/analytics/2019-11-17/china-launch-own-cryptocurrency-heres-what-we-all-need-know/

Up to now, there are about 44,000 files stored and operating on the platform. Additionally, there more than 8,000 different permission cases recorded in the directory. This is a blockchain-based directory of colossal magnitude, and what is even more important is that the Chinese government uses it.

READ MORE: https://www.cryptopolitan.com/huawei-blockchain-based-directory-china-gov/
 

madhu

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#5
What better way to perpetuate the bit coin fraud than to masquerade with gold backing?
 

smilershouse

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#6
What better way to perpetuate the bit coin fraud than to masquerade with gold backing?
Its coming Madhu. Just like the old days PMs are, and have been too cumbersome and require vigilant guarding to hold. Like the days of gold certs with interest of the Mayer Amschel era, TPTB is more like a rinse and repeat.

Mints and dealers are now involved. Crypto backed Ag/Au is the new economy. Your metals are safe with us, so said same will say, as so long as said same are benefiting in the process it seems. Believe it or not.

SH
 

smilershouse

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#8
Somebody needs to tell Papua New Guinea Prime Minister James Marape a little story about a man from Libya, named Muammar al-Gaddafi
His only crime was choosing to exchange his country's only commodity for gold Diners, the way the West treated him and Saddam for daring to move away from the US dollar oil bourse was nothing short than despicable.

SH