Can China Keep a Green Promise?

Source: Director, John Elkington (11/2/10)

"Environmental challenges led minister to declare China 'ecologically bankrupt.'"

Chinese leaders complain that we expect too much of them on climate change. Still, speaking at the World Economic Forum's fourth Summer Davos in Tianjin, Premier Wen Jiabao said that while his country would maintain rapid economic expansion and stimulate domestic demand, it would balance growth with sustainability. China, he pledged, "will continue to conserve resources and protect the environment, and raise the efficiency of resource utilization and the capacity to tackle climate change."

Great, but a huge question mark hangs over the nation's ability to deliver on such promises. Just as China has adopted some of the worst of Western carbon-intensive industrial processes, it may also adopt weak market solutions to the environmental challenges that led one minister to declare China "ecologically bankrupt."

It may be good news that China is launching an environmental, social and governance (ESG) investment index, the CSI ECPI China ESG 40 Equity Index, comprised of 40 domestic companies. But it's troubling when you hear senior people from leading global companies, such as Rio Tinto or Unilever, expressing concerns about the lack of mainstream investor interest in what they're doing on sustainability issues.

Unilever Senior VP Gavin Neath reports that "mainstream investors have [shown] little interest and given us very little credit for what we do—and there's little sign that is going to change."

The financial liabilities incurred by BP in the Gulf may fuel greater interest in ESG factors, though the market-leading Dow Jones Sustainability Indexes delisted BP only after the spill. If such companies are dropped because of such incidents, are socially responsible investment (SRI) funds really providing investors with value added? Probably, but I don't believe that current levels of SRI activity will exert sufficient leverage on the capitalist system to achieve anything like the sustainability outcomes that Wen Jiabao seeks.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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