Newmont vs. Mother Nature

U.S. stock markets rose slightly over the period Sept.1-7. The S&P 500 index was up 17 points, or 1.5%, while the Dow Jones Industrial Average was up 1.6%, or 168.87 points, to close at 10,342.79 points.

The markets were closed on Sept. 6 for Labour Day. The two most active mining stocks traded more than 9 million shares each.

Alcoa led the way in volume, trading 9.6 million shares. The stock rose 69 to close at $33.07. The company has been named a component of the Dow Jones Sustainability Index family for the fourth consecutive year, owing to its ability to balance economic, environmental and social responsibility factors. Meanwhile, talks are resuming between Alcoa management and the striking union at its smelter in Becancour, Que. The strike over pensions, outsourcing and job security began in early July.

Newmont Mining was down 89, closing at $43.42 on a volume of 9.02 million shares. Farmers and local government officials threatened to hold a regional strike unless the company ends gold exploration at its Cerro Quilish deposit. The locals blame Latin America’s largest gold mine, Yanacocha, which is majority-owned by U.S-based Newmont Mining, for damaging water supplies in northern Peru. The companies operating Yanacocha blame a regional drought for the lack of water; however, exploration has been temporarily suspended.

Randgold Resources fell 25, or 2.7%, to close at $9.27. The company has concluded a $60-million project financing agreement for its Loulu gold mine in Mali.