||Following the devastating earthquake in Chile on Saturday, gold companies, who have operations there, have reported that their mines appear to have suffered little or no significant damage.
The earthquake was of a magnitude of 8.8 and resulted in the death of at least 700 people. Vancouver based mines Barrack Gold and Kinross both confirmed that their mines largely remained unscathed due to the fact they are based in the north of the country and the epicentre was in the south.
Gold in Chile is mainly mined off the back of copper, which forms the basis on the mining industry. Chile is the world’s largest producer of copper and ranked 16th in the world for gold.
With gold and copper mining in Chile remaining relatively unaffected by the earthquake, the main problem that faces companies is the county’s damaged infrastructure. Problems, such as inaccessible roads and shortage of power will not allow the mines to run at their full operational capacity. Analysts suggest this current situation may push gold prices up so now is the time to buy gold.