Precious metals mining company Hochschild Mining stops development of the Arcata gold mine in Peru. The company owns three mines in the south of this country. The reason for the stop is the low prices for silver.
The works will be closed at the end of the first quarter of 2019. The possibility of restarting the mining of precious metals will be based on conditions dictated by the market.
The head of the company Ignacio Bustamante said that the geological conditions and the low price of silver, which has persisted over the past few years, leave him no choice. Of course, this does not please the company's management, but the decision has been brewing for a long time.
Silver peaked in June 2016. Then the cost of an ounce of silver when buying in bulk was $ 20. While it now stands at $ 15.70, even with an increase of 15 percent since the fall, which occurred at the end of last fall.
The difficulties that have arisen are due to a decrease in industrial demand for silver.
Hochschild has been developing the Arcata mine in Peru since 1964 and will constantly monitor the market situation in order to resume work at the mine.
