Already quite familiar with the roller coaster of economic cycles, the nation’s miners may well ride a current boom higher for a longer time than in years past, industry representatives said Wednesday.
The boom comes as companies are emerging from a 15-year drought in exploration and development that has left low mineral stockpiles amid unprecedented demand and escalating prices, said Bernard Guarnera, chief executive of Behre Dolbear & Co. Inc., a Denver-based industry consulting firm.
“We are in a very unique situation,” Guarnera told participants at the National Western Mining Conference & Exhibition at the Westin Tabor Center in Denver. “This cycle is quite different than the ones we’ve seen in the past.”
Growth is being driven by a voracious appetite for minerals in China, India, Russia and Brazil, he said. For example, the four countries are expected to consume 18.5 million tons of copper by 2015, which compares with 2007 global consumption of 17 million tons.
Francis Kane, president of the International Copper Association Ltd., said China’s need for building supplies dominates his industry’s outlook.
Producers also are looking for new uses for minerals in an effort to sustain growth.
