MINING MARKETS & INVESMENT NEWS — U.S. markets — Mining companies hit new lows

Turmoil in the Asian markets sent the Dow Jones Industrial average down 384.63 points, or 4.2%, during the report period of June 10-16, including a drop of more than 200 points on June 15. The Dow closed at 8,665.29.

The strong U.S. dollar, combined with news that the European Central Bank would hold less gold in reserves than anticipated, sent the yellow metal down for the week. Other metals followed suit, which spelled trouble for mining issues. Many companies were trading at a 12-month low as a result.

On the New York Stock Exchange, Newmont Gold shed US$1.80 to close at US$24.05, testing a new low in the wake of lower gold prices; Newmont Mining finished the week at US$22.80, off US$2.30, also a new low; and Coeur d’Alene Mines lost 12% of its value, closing down US$1.20 to US$7.70.

Weak copper prices sent Asarco sliding US$1.15 to US$22.15. The company also cut production, by 15%, at its copper refinery in Texas. Broken Hill Proprietary ended the week at a new low of US$15.20, off US$1.05, while Cyprus Amax Minerals also bottomed out, dropping 90 cents to close at US$13.55 Phelps Dodge lost US$3.05 over the the week, closing at US$57.25, another new low. The company also agreed to acquire a Brazilian carbon black unit from Minorco for US$220 million.

American depository receipts of Rio Tinto fell US$3.75, ending the week at a new low of US$45.75. On the American Stock Exchange, Getchell Gold slipped US$1.75 to close at US$16, and Denver-based newcomer Apex Silver Mines lost 30 cents to close at US$10. Both became members of the new-low club.