Sunday, April 14, 2013

10% of US Silver Supply Slides into the World's Largest Hole


Interesting to observe just as US Silver Eagle sales hit record levels and 10% of US silver supply goes offline for the foreseeable future the COMEX market sells the silver price down by 6%. Because we all know that when you have record demand and a significant unexpected loss of supply of a commodity that the price of that commodity in the future markets will decline....WTF?

From kennecott.com

Link to press release

South Jordan, Utah (April 11, 2013) - Kennecott Utah Copper’s Bingham Canyon Mine experienced a slide along a geotechnical fault-line of its northeastern wall at 9:30 p.m. MDT April 10, 2013. Monitoring systems identified the event as a single slide that failed progressively.

All employees are safe and accounted for. Rio Tinto’s Kennecott Utah Copper wants to publicly thank them for their efforts and cooperation.

The magnitude of the impact from the slide is unknown at this point. Experts are assessing the site remotely. Once it has been established that it is safe to send people into the mine for closer assessment next response steps will be determined.

Background:

In 2011, Kennecott produced 237,000 tons of copper, 379,000 troy ounces of gold, 3.2 million troy ounces of silver (10% of US annual supply*), 30 million pounds of molybdenum and other products.

* % calculated from Kennecott mine data and USGS data for 2011.