The troubling state of world affairs—European contagion, a Chinese mandated economic slowdown and an anti-business administration in Washington—has investors worried about risk again. They are pulling money out of commodities and riskier investments, such as developing economies that usually hinge on commodities. Prices for most mined commodities took a hit in the last month. The exception would be gold and silver. Copper, for instance, pulled back more than 7% to $2.93/lb. That is a respectable price, but it was trading comfortably above $3/lb. Other base metals did not fare as well.

The four Rio Tinto employees arrested in China last summer have been tried and convicted on bribery and espionage charges (See Leading Developments). Because the arrests occurred so quickly after Rio Tinto broke off a potential deal with Chinese aluminum company, Chinalco, in favor of a joint venture with BHP Billiton many suspected at the time the arrests were retribution for a soured business deal.

In this edition, E&MJ kicks off 2010 as it usually does with its Annual Project Survey (p. 24). Magnus Ericsson and his team at Raw Materials Group compile the study and they do excellent work. Without spoiling all of the surprises revealed in the article, suffice it to say the mining industry will see that light at the end of the tunnel much faster than other industrial sectors and maybe as soon as the second half of 2010. Another point the survey makes is the return of gold projects.