RE: jimbojom - and zink forecastUMN
Not TAM-like potential though.
www.loparn.com
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Xstrata forecasts high zinc growth could last another 10 years
The world's largest zinc miner Xstrata suggests that the accelerated growth rate in zinc demand could last another 10 years.
Author: Dorothy Kosich
Posted: Tuesday , 06 Mar 2007
TORONTO (Mineweb.com) - The world's largest zinc miner Swiss-based Xstrata forecasts that the current high growth in zinc demand may last another decade.
In a presentation to the Prospectors and Developers Association Conference in Toronto Xstrata Zinc marketing executive Mark Patell said there is a "significant need" for new mine supply to meet the demand for zinc. Inventories of zinc concentrate and zinc metal are now very low.
"The supply forecast is inherently exposed to many risks," Patell suggested, including underinvestment in zinc mining and exploration, and constraints on the availability of resources to exploit the multitude of zinc deposits.
Also of concern is the pending decline of zinc mine headlines, and mining costs that will move "faster and higher," according to Patell. Nevertheless, sustained high zinc prices levels could encourage zinc mine growth, he added.
Patell projects that zinc demand growth will average 3.7% annually from 2007 to 2017.
He estimated world zinc demand to total 11.79 million tonnes this year, while international zinc supply will increase 8.1%.
A good portion of mined zinc output will have to come from developing countries, according to Patell.
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This is a bit more cautious than the swedish article forecast of over 5 % yearly LONG TERM growth.
It would be understandable if a big company like Lundin or Boliden, both swedish by the way, wanted the huge cheap TAM resources !