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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (15244)	7/31/2003 4:16:48 PM
From: I_C_Deadpeople	Respond to of 39344

My two cents on the issue of mine cost in China...I recall a few years back when Kensignton Resources had an option on a large diamond mine in China (Chagma? sp) I did quite a bit of research on mining in China. You will find that China has a HUGE heavy machinery industry that supports the mining industry. They do not order from CAT, they make their own heavy equipment. Do the math on cheap labor + cheap base metals = cheap steel and machinery. Then take cheap labor to put together a mining infastructure. Use Diavek as an example - how many man hours of labor at $40 or more per hour for pay and benefits? Replace that with 10% or less cost PLUS the equipment/steel, etc is cheaper.