Wednesday, September 24, 2008

Copper deficit this year

There's a very powerful description of a talk at MINExpo yesterday that concludes "everything that could go wrong is going wrong" with global copper production.

The Bloomsburg Metals Economics analyst forecast "a reduction in copper mine production, as well as a deficit of refined global copper this year." [right, copper cathodes. Credit, Asarco]

Problems include power shortages in Chile, lack of trained personnel, higher development costs, constraints on access to water, higher prices for oil, sulfuric acid, and labor, and bottlenecks in getting production equipment.

This should lead to at least maintaining copper prices.

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