Teck Resources (TSE:TCK-B), First Quantum (TSE:FM) Down on German Ban

Concerns over the ability of the European Union to rein in spending and take care of their debt crisis was increased with the German ban on speculators, which gave the impression they're unable to to handle the challenge. Consequently, Teck Resources (TSE:TCK-B) and First Quantum (TSE:FM) took a hit as the base metals sector dropped by about 4 percent earlier in the day.

Uncertainty over the impact or potential impact of inflation in China also has generated worries over how demand will be affected, and how much China will cut back on the import of raw materials.

The combination of the debt crisis and response of China to inflation has generated a new narrative for the rest of the year that not too long ago was almost sure to be a big one for those companies providing raw materials to China and other emerging markets.

Demand in the gigantic European market is also beginning to weigh on the markets, as they'll definitely struggle to focus on growth while they're now trying to survive.

First Quantum Minerals' (TSE:GM) China Loan

First Quantum Minerals' (TSE:GM) should be a recipient of part of the $5 billion in loans offered by China to private operating mining companies in Zambia.

President Rupiah Banda, said that the China Development Bank has made a deal with the Ministry of Mines to offer medium- and long-term loans to private mining companies with operations in the country.

China is also financing a power plant, committing $1 billion to build out the electricity in the country, with the plant's output adding 600 mega for the electricity the country will be able to use. The plant is scheduled to be completed in 2017.

Along with First Quantum Minerals, other mining companies to receive loans are Glencore International AG, Vedanta Resources, Metorex and Equinox Minerals.