The Week in Mining: USMCA to Secure Regional Mining Supply ChainFri, 12/13/2019 - 10:25
The Week in Mining highlights developments in Mexico’s mining industry, including a new and improved North American trade deal, a torrent of M&A deals in the gold industry that may spread to the wider industry and a tragic accident in a South African mine.
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Rich Nolan, President & CEO of the National Mining Association (US), has issued a statement applauding the announced deal to proceed with USMCA’s ratification. Nolan says the trade deal will secure the North American mining supply chain.
Among the changes in the trade deal, it was agreed that the discussion about the regional amount of aluminum in cars will be postponed for 10 years. Aluminum producers from Canada and the US have asked for protection against disloyal imports coming to North America.
Mexico’s industry saw promising developments, as Prime Mining, a relatively new company, arrived to the market to bring a gold deposit in western Mexico into production in the next 24 to 36 months.
According to Bloomberg, the torrent of deal-making among gold producers that has pushed M&A activity in the sector to an eight-year high may spill over to the wider mining industry if there is a surge in global growth.
955 gold miners were rescued after an underground mine in South Africa collapsed. However, the rescue team was unable to reach four miners on time, who were trapped 1,300m below ground level. Their bodies were recovered on Sunday, Dec. 8.
Focusing on technical factors rather than on liability issues, mining giant Vale released a report saying that the Brumadinho waste dam collapse was partially triggered by a persistently high water level that caused the structure to lose strength and stability.