Copper, iron ore prices surge on signs of quick global recovery

Spot gold was last down $8.40 at $1,254.10 an ounce in New York, having hit a three-day low earlier in the session at $1,251.83 an ounce.

The overseas unit of China’s largest state-owned copper and zinc producer is the latest victim of a sustained rout in metal prices.

The rock, discovered by Lucara in Botswana last year, is second in size only to the Cullinan diamond in the British Crown jewels.

The ramp up in Mongolian coal production will be faced with decreasing demand from China, the major importer of Mongolian coking coal.

As deflation looms, metal has not done this well in 42 years.

Official figures released in Beijing showed that exports in February were down 25.4% on a year earlier, the worst performance since May 2009

Long-term, the deal could be viewed as the first step of a more disciplined approach to iron ore supply by aligning two of the world’s “big four” producers of the commodity.

The recent surge in prices of gold, oil and other commodities has come prematurely, says the bank, arguing that lower prices are needed for markets to rebalance.

Causes of the wall collapse at the open pit KOV mine are still unclear.