Mexico’s Miners All Set to Restart Activities in JuneBy Alejandro Ehrenberg | Thu, 05/14/2020 - 13:26
The Week in Mining underscores Mexico’s industry eagerly-awaited return to activities. Government authorities have finally recognized mining as essential to the economy. Moreover, most mines are located in areas that have experienced low or null COVID-19 contagions. Activities are expected to resume in June.
Mining companies are getting ready to restart operations in Mexico. Fernando Alanís, President of the Mexican Mining Chamber (CAMIMEX), said that 82 percent of the value of national mining production is located in municipalities classified by the Ministry of Health as having null, low or very low contagion. Also, employees in mining operations naturally keep a distance from each other in a large number of activities.
Mining companies in Mexico had to shut down operations due to the COVID-19 outbreak, as the government did not consider the sector an essential activity at the beginning of the health emergency. The shutdown’s impact is not minor: it has led to massive losses in 1Q20.
Miners were not idle during the shutdown. CAMIMEX announced that 23 mining companies operating in Mexico had donated services and medical supplies to communities in 16 states. Mexico’s mining industry is in a privileged position for safeguarding the health and economic development of the most vulnerable populations in the country.
“Silver prices are poised to break out to the upside in the magnitude of over 40 percent, owing to fundamentals created by COVID-19 and to an excessively high gold-silver ratio that is expected to mean-revert,” according to Nathan Rines, writer for Seeking Alpha.
“Gold price rose for the second straight Wednesday as investors weigh the economic impact of the COVID-19 outbreak and its effect on commodities. Spot gold rose 0.5 percent to $1,710/oz on Thursday. Gold futures were up 1 percent to $1,716/oz on the COMEX in New York.”
“Copper rallied again after a rebound in Chinese imports of the metal indicated the country’s manufacturing and construction sector may be emerging faster than anticipated from the COVID-19 slump.”