RE: NAMBC spells it out to MongoliaI think you guys are overly bullish about copper prices. They will drop to $0.90 - $1.00 by 2008. Market forces will be the cause. Stop valuing Oyu Tolgoi or the Copper Flats using $1.50, it will not stay at that level for 30 years. Supply will catch up with demand.
Kavi
----------------------------------------------------------------------
Codelco, Minmetals Copper Supply Deal Valued At $1.03/lb
Thursday June 9, 2005, 8:13 am
DJ Codelco, Minmetals Copper Supply Deal Valued At $1.03/lb
SANTIAGO (Dow Jones)--The 15-year copper supply deal Corporacion Nacional del Cobre de Chile and China Minmetals Corp. recently signed implies the Chinese firm will pay $1.03 per every pound of copper Codelco delivers, Codelco President Juan Villarzu said Wednesday.
The Chinese firm, through its China Minmetals Non-Ferrous Metals unit, will pay Codelco $550 million up front to secure a yearly delivery of 55,750 metric tons of copper for 15 years. It also will pay Codelco an additional $0.50 per pound of copper supplied, Villarzu told reporters.
Codelco is certain it signed what Villarzu called a "win-win deal" as copper prices are expected to drop under $1.00 a ton in coming years.