Gold prices are expected to remain strong in the short term as global financial uncertainty and dovish monetary policy spur demand for the yellow metal. Copper, however, is under pressure amid a deceleration in China’s manufacturing sector. In turn, low copper prices are partly responsible for the reduction of Chile’s GDP forecast. In Mexico, CAMIMEX announced a potential investment of US$26.4 billion in the country’s mining industry, while an environmental calamity at Guaymas port in Sonora calls for stricter compliance with existing regulations.
Do not miss this week’s Interview of the Week with Peter Secker, CEO of Bacanora Lithium. We discussed Mexico’s investment appeal and its potential to become a top lithium producer and reviewed Bacanora’s strategy for meeting the world’s growing demand for the metal.
Want to know more? Check out what made the headlines over the past week!
The World Gold Council published a study underscoring financial market uncertainty and accommodative monetary policy as factors that will support gold investment demand in the short term. Prices for the yellow metal are expected to remain strong. On the other hand, the head of the London Metals Exchange pointed out that the low prices at which copper has traded in the last three months hint at a manufacturing slowdown in China.
Camimex announced its affiliated companies are ready to invest US$26.4 billion in Mexico’s mining industry during the present administration. Complying with a Supreme Court sentence, Grupo México announced detailed information about its new tailings dam in Sonora. A few days later, the company announced a sulfuric acid spill in the Sea of Cortes. Citing environmental concerns, the federal government fenced off a potentially mineral rich area in Baja California Sur. In Zacatecas, the 12th edition of the Diploma Program on Mining Risk Prevention kicked off on Monday, drawing mine managers from around the country.
Global trade tensions are impacting Chile: The world’s top copper producer cut its forecast for 2019 GDP growth citing mining and commerce deceleration. Also, the Andean country introduced a bill to strengthen environmental regulations. Stiffer fines and jail time for serious violations of the country’s environmental rules are part of the proposal.