MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS — Weak gold pounds producers

The Dow Jones Industrial average slumped 178.89 points for the report period ended July 20, closing at 10,996.13.

Falling gold prices continued to pummel producers as copper markets mulled the significance of a merger to create the second-largest producer in the world.

Battle Mountain Gold slipped 24 cents to a new low of US$1.88 as the yellow metal sunk to US$253.80 on the Comex division of the New York Mercantile Exchange.

Newmont Mining, listed on the New York Stock Exchange, dropped 75 cents to finish the week at US$17.06. Anglogold slid 19 cents to close at US$20.

Among the mid-size producers, Glamis Gold was down 13 cents to US$1.62, while Meridian Gold lost 19 cents to close at US$4.

In the copper sector, the market pooh-poohed the proposed merger between Cyprus Amax Minerals and Asarco. The former suffered the most, dropping $1.31 in heavy trading to US$13.19. Asarco was down $1.19 to US$18. As a result of the proposal, Asarco subsidiary Southern Peru Copper gained 69 cents to close at US$14.50.

Copper companies languished as stockpiles remain high, but the price held steady at US77 cents per lb. on Comex. Phelps Dodge lost 81 cents to close at US$63.94, while Australia’s Broken Hill Proprietary slumped 69 cents to US$23.62.

Class A and B shares of Freeport McMoRan Copper & Gold dipped 44 cents and 37 cents, respectively, to close at US$16.25 and US$17.19.

Over at Nasdaq, De Beers Consolidated Mines fell $1.25 to close at US$24.25.