Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
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Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)

The Saudi Ministry of Industry and Mineral Resources will organize on Jan. 11-13 in Riyadh, the International Mining Conference, which will be an opportunity for governments, companies and investors to discuss various issues and challenges facing the sector in the past two years.

Challenges of the Sector
In this context, the Global Mining Risk Survey 2021 report, issued by KPMG International, noted that the disruption of global supply chains posed a future challenge for the sector, adding that the cyclical fluctuations in global resource markets presented some difficulties for the mining sector.

With the market frequently unstable, the report said that mining companies must plan ahead, while boosting their use of scarce natural resources and pressing for cost solutions. It also stressed the need to increase focus on social responsibility programs.

According to the report, mining companies need to develop a more accurate view of the markets in which they operate, in order to chart the direction in which commodity prices are likely to head and make the right strategic decisions.

Sector Response
The reported noted that although the coronavirus pandemic has caused an economic recession in most countries of the world, it also led to higher stimulus spending in most key areas. This has increased demand for basic commodities, and prompted the mining sector to respond quickly to the unprecedented challenges posed by the pandemic, while ensuring the safety of employees and maintaining the security of supply chains.

The report indicated that commodity price fluctuations will force mining companies to constantly adjust their mine operations plans, in order to reach a much-needed value attraction, in the face of ever-changing market conditions.

Supply Chains
The problem of global supply chains continues to harm various industries, including mining, the report noted, which means that metal prices will rise in the next few months, and accordingly, the retail markets and the automobile industry will also be affected.

As for the means to solve the problem of supply chain disruptions, it will depend, to some extent, on the efforts to combat the spread of the coronavirus, especially with the emergence of the Omicron variant.

Nevertheless, the report pointed to signs of optimism as freight rates have decreased significantly in Asia and in freight lanes between the US West Coast, Asia and Europe.

Contrasting prices
According to Bloomberg’s analysis, in August 2021, the picture was not so bleak all the time for the mining sector, as iron was a big driver of profits for the largest producers, while the commodity hit a record level in the first half, at USD200 per ton.

Despite the recent decline in the prices of some commodities amid fears of a new surge of coronavirus cases, and with China’s move to limit the rise in costs, the prices of basic commodities for all categories are still registering record levels at the present time.



Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
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Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo

Gold prices eased on Tuesday, weighed by higher US Treasury yields as US President Donald Trump announced new tariff proposals on trading partners, including Japan and South Korea.

Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.

The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.

"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."

On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.

The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.

"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.

Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.

Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.

Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.

Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.