What is happening to the current state of metal prices, specially “copper” and “gold”? One may add, how about “oil” too? At present, the downward trend of low prices of gold, and copper, are sending jittery scenarios to all miners, be it the financiers and bankers, the claim owners, the contractors, the suppliers, and the workers from the highest officer of a company down to its lowest worker. Count therein the host LGU’s as well as the host people in a particular mining area. These groups do not want the metal prices to go down. It’s simple. Low metal prices mean low income, or no income at all, or worst, no mining and related activity. Nightmare is closure!
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But in this franctic world, society and economy, we are working and living, these commodities control us – they control all things we need and use in our daily living. Starting from the time when we wake up. What do we usually do first? We take hold of a cup or glass, fill it with water, drink or brush our teeth? Until we turn on the radio or TV or any gadget we have like i-phone or i-Pad, etcetera, etcetera, and then at the end of that long and tiring day we end up resting on our bed. These commodities are there all along dictating every aspect of our lives.
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If we have our way, we want the metal prices at a level that supports favorably the miners, large or small scale, the financiers and bankers, the claim owners, the contractors, the suppliers, and the workers or employees, the host LGU’s as well as the host peoples. Higher metal prices mean progress and development to the local government units concerned through the taxes the miners pay. High metal prices support sustained good production, supports steady return of investments made by the financiers and bankers, ensures payment of loans from creditors, good higher rate of royalties for the IP’s and claim owners, ensures payment of supplies, steady income for all workers, and sustained development of the community. One cannot imagine the effect of a suspended mining activities or closing mining area at this time. I alone have children to send to school. I alone still do not have a house to return or settle in. What will happen to me and my family? Will I return to farming? Did I miscalculate the MRP opportunity offered by our company? All of these bother the simple miner. But as I write this, a glimmer of hope is taking place when an improvement in the market prices did went up, but not so long, it will still go down more, and soon, the experts say.
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What can we do? In our company, and I am sure it is the same in all other companies and investors, the low metal prices can be checked by rationalizing the cost to produce the metals. I mean keeping the cost to the barest to keep afloat hoping that at the end the prices of these metals will make a rebound. But how soon will it turn around? Almost all of the economic experts see a different view – the metal prices will still be low and it will stay there for a period we did not imagine. Ano to, matira ang matibay?
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In the local scene, a known existing and ongoing mining company has suspended (lay-off) quite a number of its present workforce within the period allowed by law and regulations. In such case, it can arrest the bleeding so to speak brought about by the steady low metal prices especially so that its sole produce is gold. For a large mining company, or any company for that matter, there are authorized causes that permits suspension of work, or reduction of workforce, or to the extreme, and as a last resort, closure. So far, this extreme measure is not yet an option. But until when can these companies keep the bleeding?
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There is one sure thing we can do. Keep the faith and belief that the ever good Lord is keeping a watch over His people and will surely make a way to ease our pain. Believe me! Abangan!
