Gold miners in the Bering Sea are reeling from a $1.3 billion price crash, with prices plummeting to below $1 a troy ounce.
The world’s largest gold producer, which is also one of the world’s biggest exporters of refined products, said it was facing a $6.4 billion shortfall.
The announcement came amid a global commodity rout that saw China’s yuan sink 6.7% in early trading, the most since early February, while commodities markets in Europe, Japan and the U.S. also slid.
But amid the selloff, gold prices have bounced back, climbing more than 30% to around $1,300 an ounce.
“I have a good view of how the BER has done over the past few months,” said Chris DePasquale, chief executive of the Berenberg Group.
“The market has been very supportive of the company and we are pleased with the trajectory the company has taken.”
He noted that the company is spending more than $1 billion to improve operations, and expects that to increase to about $1 million a day in the next few months.
The company is also hiring about 800 new employees.
The Berenburg Group is one of a handful of companies that owns a stake in the company, which has operations in Bering, Alaska, the Canadian Arctic, and the Pacific Northwest.
The mining company is a joint venture between Berengereich, a German conglomerate, and a Chinese investment group called CIM Group.
The group is also in the process of buying another mining company, a subsidiary of Chinese mining company Sinohydro Resources.
Bering’s collapse comes after the global commodity market fell to its lowest level since early March, according to data from the Global Financial Integrity Group.
Gold prices, which have surged since the start of the year, have rebounded somewhat in recent days, with gold up more than 12% to $1 of an ounce in the last two days.
That is the highest gain since the first week of March, when prices were in the $1-per-ounce range.
Berenz’s announcement also comes amid a new wave of political and social unrest in China.
On Wednesday, a group of protesters led by a young student student took to the streets in Beijing to call for a crackdown on what they called “blackmail” by the Communist Party.
The students were joined by a group that includes students from universities in Hong Kong and Macau, both of which are controlled by China.
The protesters said the government was trying to make money by manipulating gold prices.
China is one the world in which the biggest investors of gold, as well as China’s largest mining company.
In May, the International Monetary Fund said that China’s state-owned enterprises would need to cut more than a trillion dollars of budget deficits and debt this year to avoid “severe social and economic damage.”