Metals & Mining Monitor | Gold Experiences Significant Weekly Drop; Mineral Resources to Suspend Western Australia Lithium Mine

Spot gold fell by 4.4% to $2572 per ounce last week, marking its most significant weekly decline in over three years. This drop was primarily driven by a strengthened dollar, following tempered expectations for a rate cut by the Federal Reserve, which in turn dampened investor interest in gold. The surge in the U.S. dollar, which increased by 1.64%—its largest weekly gain in more than a month, was attributed to unexpectedly robust U.S. CPI and retail data. Additionally, Federal Reserve Chair Jerome Powell indicated in his speech last Thursday that there was no urgency to cut interest rates, further boosting the dollar. Despite these factors making gold more expensive for holders of other currencies, escalating tensions between Russia and Ukraine over the weekend heightened market risk aversion, providing momentum for a potential rebound in gold prices. On Monday, COMEX gold futures rose by 0.9% to approximately $2594 per ounce. $Gold Futures(DEC4) (GCmain.US)$

$Mineral Resources Ltd (MIN.AU)$ announced it will initiate care and maintenance procedures at its Bald Hill lithium mine in Western Australia this week, spurred by extended periods of low spodumene prices, as stated in a recent filing with the Australian securities exchange. Mining activities will cease immediately, with processing operations scheduled to conclude by early December. The decision impacts approximately 300 workers, although efforts to redeploy employees will be made where feasible. MinRes has revised its fiscal 2025 forecast for spodumene shipments to 60,000 dry metric tonnes, a significant reduction from the previously projected range of 120,000 to 145,000 tonnes. Additionally, updates to Bald Hill's mineral resources show a substantial growth to 58.1 million tonnes at 0.9% lithium oxide, reflecting a 168% increase, attributed to new drilling data.

$Rio Tinto Ltd (RIO.AU)$ has committed to investing $16 million in the Makira Natural Park Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+) initiative in northern Madagascar. This investment, announced in a November 15 statement, is in collaboration with the Wildlife Conservation Society and Everland. The funds will support the assessment of the deforestation baseline within the project area and enable reporting on the effectiveness of ongoing efforts aimed at curtailing deforestation. This financial commitment supplements Rio Tinto's existing decarbonization strategies. Covering 372,000 hectares, the Makira Natural Park is one of the most extensive remaining rainforests in Madagascar, the statement noted.