Vaccine Hopes Rattle Metals MarketBy Alejandro Ehrenberg | Thu, 11/12/2020 - 17:13
The Week in Mining highlights how the race for developing a COVID-19 vaccine is shaking up the mining industry. Increased demand for metals during the pandemic has resulted in more investment coming to Mexico. Precious metals tumbled as markets eagerly anticipate a return to normality, while copper rose on the same expectations. Finally, our expert contributors delved into mining’s PR problem and how to mend it.
This and more in your weekly mining roundup!
COVID-19 increased demand for metals in the energy, pharmaceutical, automotive and technology sectors. As a result, Mexican mining companies have seen higher profits and there has been a greater investment influx to Mexico from Canadian companies.
Sonoro Gold Corp announced assay results from 12 reverse-circulation drill holes at its Cerro Caliche project in Sonora. Highlights include key intercepts at the Japoneses and Buena Suerte zones and indicate a fast-track to gold production in 2021.
Almaden Minerals reported that a field geology exploration program is now underway in the company’s property surrounding the area of the Ixtaca project.
Communities in Colima protested against mining company Hematite’s iron ore mining project. Community leaders claim the project will contaminate the El Cocoa river, which is vital for their economic activities.
It has been a hectic week for gold prices, which initially surged as it became clear that Joe Biden had won the US elections. The price held steady as the US labor market reported promising figures. However, the yellow metal’s safe haven appeal lost some of its lustre as several firms announced that a COVID-19 vaccine is around the corner.
Expectations of a return to normality in 2021 also hit silver, which fell roughly seven percent. The white metal’s industrial applications prevented it to fall even further, Kitco News noted.
The possibility of a vaccine also influenced copper prices, which rose on hopes that the global economy will recover sooner than expected.
Karina Rodríguez, Partner at Rodríguez Matus and Feregrino, wrote that breaking the myths surrounding mining is the first step toward realizing the sector’s full potential.
Rubén del Pozo, from the Association of Mining Engineers, Metallurgists and Geologists of Mexico, explained that mining is an industry that has been paralyzed by fear and by a poorly told story. However, he writes the industry has another reality that must be told.