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In Reply to: Everything, Jim. posted by Poindexter on March 22, 2007 at 13:31:37:
For quite some time there has been under investment in both mines and refining capacity for non ferrous metals, to the extent that there was no point in investing in this infrastructure as it would not make sufficient returns.With demand for commodities increasing from China in particular as that economy grows and the population becomes more affluent (they want to buy more stuff) as well as commodities that go into manufacture for export, the more demand than supply can, well, supply means prices go up. Simple really.
BTW, if you think that places like the mountains of South America, the jungles of Indonesia and PNG (where Mining has been going on for decades) are "easily accessible", it could be worth reconsidering that assessment.
Similarly, it really cracks me up when I read about complaints in the USA (I lived there for a significant period BTW) about "predatory oil companies". The notion that the "taps should be turned on" betrays a serious lack of understanding about how long it takes to find, evaluate and develop not only an oil or gas field, but pretty much any commodity.
I'll get off the soap box now. :-)
Best regards,
Bill
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Follow Ups
- It has nothing to do with "easily available resources" - Bill Jaensch 02:58:19 03/24/07 (0)
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