Effect of South American Nationalism on Commodities

[RichKid]

Iran and China aren't the only drivers of commodity speculation....I've been keeping an eye on this, in a way as an Australian I'd want as much of our resources as possible used for our benefit and owned by us, so it figures that other countries would want the same too. The main issue here is the way multinationals do business and the political views which conflict with it, amongst other social issues.

Oil:
(link to this article is in the third paragraph of the next story- click through the the link below to read it all)
Latin America wrestles with Big Oil
By Jasmina Kelemen, MarketWatch
Last Update: 1:13 PM ET May 10, 2006

HOUSTON (MarketWatch) -- As record commodity prices translate into staggering profits for Big Oil, many producing nations, including some of the United States' largest suppliers in Latin America, are eyeing the industry's swelling coffers and deciding that more of those riches should stay at home.........


Mines in general: http://www.marketwatch.com/News/Sto...84A4-DB8F37ED1A42}&siteid=bigcharts&dist=news

Gold markets eye Latin American moves
Nationalizing natural resources may add fuel to gold's rally, but sink shares
By Myra P. Saefong, MarketWatch
Last Update: 2:20 PM ET May 10, 2006

SAN FRANCISCO (MarketWatch) -- Moves by Venezuela and Bolivia to nationalize their countries' natural resources could soon spill into the mining sector, likely boosting prices for metals that are already at multi-year or record highs, while pressuring shares of companies with interests in Latin America.

"A great leftwing, socialist rising is occurring in Latin America, which will push higher all mineral prices," said Ned Schmidt, editor of the Value View Gold Report.

"Venezuela and Bolivia are only the beginning," he said.

Indeed, early this month, Bolivian President Evo Morales said the move to nationalize the country's hydrocarbons sector was just the beginning. "Tomorrow it will be the mines, the forest resources and the land," he said.........

 

[bvbfan]

I've been keeping an eye on this, in a way as an Australian I'd want as much of our resources as possible used for our benefit and owned by us, so it figures that other countries would want the same too.

The FIRB (foreign investment review board) is there to look after Australian interests. The treasurer also has power to block bids.

I can only recall one blocked bid, Shell for Woodside at $10.
Shame about Normandy, AurionGold, MIM, Abelle. The whole mid cap sector was virtually wiped out from takeovers.

 

[RichKid]

The FIRB (foreign investment review board) is there to look after Australian interests. The treasurer also has power to block bids.

I can only recall one blocked bid, Shell for Woodside at $10.
Shame about Normandy, AurionGold, MIM, Abelle. The whole mid cap sector was virtually wiped out from takeovers.

....but look at the current American regime, if you're from the Middle East or China you can't buy US co's (for security reasons, apparently) but if it's an American co trying to buy up whole chunks of South American countries there shouldn't be a problem...that's a free market? Hopefully the yanks wont send in secret agents to knock off Sth American leaders the way the used to Kissinger's time.

 

[RichKid]

The FIRB (foreign investment review board) is there to look after Australian interests. The treasurer also has power to block bids.

I can only recall one blocked bid, Shell for Woodside at $10.
Shame about Normandy, AurionGold, MIM, Abelle. The whole mid cap sector was virtually wiped out from takeovers.

....but look at the current American regime, if you're from the Middle East or China you can't buy US co's (for security reasons, apparently) but if it's an American co trying to buy up whole chunks of South American countries there shouldn't be a problem...that's a free market? Hopefully the yanks wont send in secret agents to knock off Sth American leaders the way they
used to in Kissinger's time.

Eitherway the effect is more volatility in commodities markets but perhaps also a fairer distribution of wealth.

 

[Smurf1976]

It ought to be fairly obvious by now that buying oil etc isn't going to be easy in the future. Those who have it are coming to the realisation that it's more valuable for use at home over the long term than being pumped out quickly and sold in exchange for US Dollars.

Meanwhile, in Australia we continue to sell gas at ridiculously cheap prices and extract oil as fast as we can in the belief that we can always import in the future if needed. Already we import large amounts of oil and there are now plans to import gas within 5 years.

What, apart from short term profit, is the benefit from setting ourselves up to be at the mercy of the rest of the world for oil and gas? Sell it cheaply and hope to be able to buy some back at 10 or 100 times the price. Smart?