Silver moved into the second quarter displaying a pattern investors are likely becoming all too familiar with, whereby the market shows signs of strength at the opening of the week, responds negatively to a midweek disappointment, and attempts to claw its way back with the approach of the weekend.
Copper hit its highest level in 2012 this week, boosted by strong manufacturing data from China. Steady job growth in the US too is pushing up demand, but downside risks especially in Europe remain.
Recent potash contract placements by some of the world’s largest buyers have raised hopes of a resurgence in the fortunes of potash companies and their investors.
Silver started this week moving in a positive direction, but is now back under pressure. The metal has yet to return to its February 29 high, and it appears that many investors are deciding not to wait around.
Tailings are materials produced from mining such as milled rock and effluents. In many cases, massive quantities of these materials, regarded as waste, are left from previous operations. Given the potential health and environmental risks associated with tailings, they could be viewed as problems or project deterrents, but then again, they could be viewed as a source of cash.
There is no doubt that copper mining is a big business in Arizona, supporting over 62,000 jobs and contributing about $7.5 billion to the state’s GDP. But for Arizona to retain its prominent position in the industry, and indeed for the United States to remain a significant producer of the metal, the way that state legislature and national regulations move forward on land and mining rights will be critical.
Serial mega-mine developer Robert Friedland said in early February that Ivanplats will be developing the Kamoa mine in the DRC, Africa’s largest copper project that will have a lifespan that can be “measured in generations as opposed to decades.”
China, the world’s largest supplier of rare earth, may almost double exports this year, meeting quotas set by the government as lower prices continue to stimulate demand.
After five years of declines, primarily attributed to low production, poor prices, and a high Australian dollar, IBISWorld’s “Industries to fly and fall in 2012” report forecasts a “revenue rebound” for Australia’s diamond and gemstone mining industry that will involve five years of growth with industry revenues climbing to $947.3 million by 2016-17.
