Copper Miners Must Tap New Areas as Demand Soars, Cesco Says
By Bloomberg News - May 30, 2011
The global copper-mining industry needs to expand to new regions if producers are to bring supply back into line with unprecedented demand, according to a mining- studies group in Chile, the world’s largest producer.
So far, the industry’s reaction to record prices has been slow because of declining ore grades, the need for deeper mines and higher costs, Juan Carlos Guajardo, executive director of the Center for Copper & Mining Studies, said yesterday.
The global copper market faces a 377,000-metric-ton deficit this year, according to the International Copper Study Group, as demand, led by China and other emerging markets, outpaces supply. Copper futures in London surged to an all-time high in February.
“Since mining is a long-term industry, more time is needed to reach a new equilibrium in the copper market,” said Guajardo, speaking at a Shanghai Futures Exchange conference. By 2015, a further 2.1 million tons of capacity is needed, he said.
bloomberg.com
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