Mercator Minerals Ltd MLKKF

Long Term Copper Trend

[24~Karat]

Xstrata CEO says Copper Price to Stay High April 27, 2006 - 10:24AM The Age, Australia https://www.theage.com.au/news/Business/Xstrata-CEO-says-copper-price-to-stay-up/2006/04/27/1145861455173.html Xstrata Plc chief executive Mick Davis says copper prices will remain at historic high levels because of a continue lack of supply. Mr Davis, who was at the official opening of the Swiss miner's Rolleston mine, says he can't put a figure on the copper price but believes the current record run is a reflection of the nature of the industry. "I can say to you it will stay at levels above the long term cost of production simply because we do not have that supply response capability at the moment. Mr Davis, whose company owns the rich copper supply at Mount Isa after taking over MIM in 2003 said: "The great mines of yesteryear" are entering into middle or old age." He said companies have to spend more money at these mines the keep up levels of production. "This is a reflection of an industry that needs to be revitalised. "I defy you to find in the next two or three years any new great projects to come on. "So unless there is a dramatic discontinuity on the demand side, the copper prices are to remain high," he said. ► Comment: Perhaps Xstrata is not aware that Mineral Park will become the largest copper/moly expansion in North America