Gold’s surge to a new record high above $3,500 an ounce is triggering major realignments in global mining, with geopolitical tension, strategic pivots, and regulatory crackdowns driving a new phase of risk and opportunity, according to Christopher Ecclestone, Principal and Mining Strategist at Hallgarten & Company.
Speaking with Kitco’s Senior Mining Editor and Anchor Paul Harris during the latest Digging Deep episode, Ecclestone criticized Barrick’s move to downplay gold in favor of copper, calling it “lipstick on a pig.”
“Barrick is not big enough in copper to matter,” he said. “If you’re 90% gold, you’re gold. Why try to adopt another identity?”
In Africa, Ghana’s decision to centralize the purchase of gold from artisanal miners marks a crackdown on illegal Chinese operations that have long avoided taxes and environmental regulations. “It’s bad news for the Chinese – and I’m loving it,” said Ecclestone. “The Chinese have been rampaging through Ghana, bribing people, creating environmental disasters. They’ve been salting away gold with zero benefit to Ghana’s economy.”
Meanwhile, Fortuna Mining announced its exit from Burkina Faso, selling the Yaramoko mine at a steep loss. Ecclestone slammed the company’s 2021 decision to move into West Africa, warning that it strayed from its core competencies in Latin America. “They lost their shirt. They should’ve stuck to their knitting.”
In contrast, Ecclestone sees Argentina as a rising star for mining investment, thanks to new reforms by President Javier Milei. “Profits going forward are now repatriable, and equipment imports are easier,” he explained. “This is the second leg of making Argentina great again in mining.”
Looking ahead, he also pointed to Ecuador as a key growth market, with over $10 billion in projects heading toward decisions under a pro-mining administration.
However, Ecclestone warned that U.S. tariffs on Chinese critical mineral exports may end up harming American industry more than Beijing. “The U.S. is punishing China for having what it lacks,” he said. “That’s just self-harm.”
He concluded that while Latin America is opening up for mining, the U.S. risks falling behind unless it tackles its permitting crisis and reduces dependency on foreign producers, even for domestic projects.
Source: Kitco
