Turbulence in Mexico’s Government Resonates in the IndustryBy Alejandro Ehrenberg | Thu, 09/03/2020 - 17:11
The Week in Mining underlines shakeups in the Mexican government that will reverberate in the mining industry. Notably, the Undersecretary of Mining got axed and SEMARNAT’s head resigned. Notwithstanding, juniors in Mexico keep marching onwards with promising projects amid a strong metals market.
This and more in your weekly mining roundup!
Mexico’s Ministry of Economy announced the elimination of the Undersecretariat of Mining. The measure is a result of a presidential austerity decree directed at federal agencies and bodies. Francisco Quiroga led the Undersecretariat since Dec. 1, 2018. He promoted responsible mining based on socially inclusive and environmentally sustainable development.
President López Obrador declared that María Luisa Albores will replace Víctor Toledo at the helm of Mexico’s Ministry of Environment and Natural Resources (SEMARNAT). The president informed that Toledo stepped down due to stress-related health issues.
Santacruz Silver Mining announced that it has filed an independent NI 43-101 technical report on the Zimapan property, which the company intends to purchase from Peñoles. Additionally, Santacruz reported that it received certification and recognition from the Initiative for Responsible Mining Assurance (IRMA).
Vizsla Resources announced a third new finding at the Panuco project in Sinaloa. The discovery was made with the company’s first step-out drill results along the Napoleon vein corridor.
Industrial recovery in China is gaining pace, pushing copper prices up. “Copper for delivery in December trading on the Comex market in New York changed hands for US$6,757 per ton, the highest since June 2018. The move brings gains of 10 percent for 2020 and 58 percent since the March low point,” reported the Northern Miner.
A weaker US dollar resulted in a higher gold price, but strong equities might mean a decline in the yellow metal’s market appeal. “The weaker dollar and the anticipation that we are going to get a further dollar weakness has led to some small increases in gold. But there is a significant concern that the equities market might have gotten extended and there might be some profit taking coming, which may lead to a rotation back to gold,” informed Mining.com.
As gold trades at record highs, silver is expected to gain the attention of investors seeking safe haven assets. “Investor demand has switched to silver as a cheaper alternative to hedge macro risk through precious metals,” reported Kitko News.