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The surprise announcement last Wednesday that Agnico-Eagle (TSX, NYSE: AEM) has shut down operations at its Goldex mine in Val d'Or, Quebec reminds us just how risky the mining business can be – not just for the miners but for investors as well.

The company said the closure was necessitated by weak volcanic rock above the ore deposit which allowed water to flow into the mine. The situation is being investigated further and it is uncertain whether the mine will ever be able to reopen.

Floods and rock falls aren't the only problems facing mining companies. Strikes, political unrest, falling commodity prices, currency fluctuations, and environmental issues are only a few of the many other setbacks they can experience. So every mining stock should be seen as high risk, no matter how big the company. If you can't handle that, stick to utilities....

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