The Week in Mining focuses on the rise in gold prices caused by an uncertain global growth outlook, tensions between the US and other countries and a potential Fed rate cut. Copper prices are also climbing, mainly due to expectations regarding China’s new infrastructure plans and a labor strike at the world’s largest copper mine. In Mexico, protesters at Peñasquito have agreed to lift their two-month blockade of the mine and start formal negotiations with the government. Also, deep-sea mining is delving ever deeper, as a Swiss company invests in a promising Canadian startup.
Finally, do not miss this week’s Interview of the Week with Alejandro Espejel, country manager of FLSmidth, where we discuss the main challenges operators are facing in terms of mineral scarcity and falling grades.
Curious? Dig in!
Global Tendencies Influence Gold
- On June 10, gold prices dropped 1 percent after the US and Mexico reached a preliminary agreement on tariffs and migration.
- Later in the week, the precious metal regained its appeal due to lackluster expectations about global growth and potential rate cuts by the Federal Reserve.
- And on June 14, gold flew past the US$1,350/oz benchmark for the first time in 14 months. This was partly due to further hostilities between Iran and the US and continuing tensions between China and the North American giant.
Copper Prices Also Rally
- China, the biggest copper consumer in the world, announced plans to stimulate its economy through major infrastructure projects. Unsurprisingly, this helped push copper prices up.
- Also helping prices was a labor strike at the world’s largest copper mine, Chuquicamata, that has spurred expectations for tighter supply of the metal.
- According to Robert Friedland and Yufeng “Miles” Sun, co-chairmen of Canadian miner Ivanhoe, the metal’s price surge will likely hold for the long term as copper is key for developing the green technologies of the future.
Mexico’s Peñasquito mine is on its way to resume operations
- News sources report that the Ministry of Interior has reached an agreement with protesters at Peñasquito, who will lift their blockade of the mine and start formal negotiations on Monday.
- Canada’s Deep Green Metals, a startup that aims to scoop up metallic rocks located in the depths of the ocean, is closer to beginning its first feasibility studies thanks to a $150 million investment by the Swiss company Allseas Group.