Market observers believe Mongolian
copper prices will remain high for at least the next two years.
One of the main reasons given
for the continuing high prices are delays to planned mining projects
caused by increasing percentages of revenues being funneled off by governments
in Mongolia and Africa.
On the London Metal Exchange
copper prices closed last week at a new record high of $8,880 a ton
after workers stopped production due to a labor dispute at Codelco in
Chile, the world's largest copper supplier.
Prices are also remaining high
because huge projects, such as Mongolia’s Oyu Tolgoi copper-gold project,
is now expected to be at least one year behind schedule due to the Mongolian
government’s renegotiating its mining agreement with Ivanhoe Mines
Ltd. and Rio Tinto Ltd.
Comments
Post new comment