XN000022-1978-05-08 — Page 9

Daily Information Bulletin 新聞公報 All

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Hong Kong: Mining and Metals

Hong Kong cannot claim to be among the leading mining areas in

the world. In recent years the value of our miniscule production of

iron ore, feldspar, kaolin and quartz has averaged less than US$2 million

per annum and our tiny iron ore mine has now closed down. On the other

hand, it is possible that a small tungsten mine may be reopened soon

after being closed down for 10 years.

Equally, although we are a user of metals for some of our

industries, we produce little of our own. We do, however, have one of

the largest gold markets in the world, with silver trading soon to be

added; and our commodity futures exchange could well, before long, branch

out into trading in metals. Indeed, I think Hong Kong will eventually

become a major commodities trading centre in this part of the world,

with close links with the London and New York markets.

World Trade in Minerals and Fetals

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The failure successfully to cartellise or control world trade

in minerals and their refined products gold being an exception until

recently - has meant that producers have simply had to adapt themselves

to movements in market forces. Even today, when much of the world's

production and trade in minerals and metals is in the hands of large

firms and groups, prices are, for the most part, determined on relatively

free markets such as the London Metal Exchange.

/Apart perhaps

T

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