| MINING NEWS ARTICLES
September 23, 2008
Expert says mining's future is bright: Optimism fueled by high demand from China, India
By DOUG McMURDO - Associate Editor
Elko Daily Free Press
Harold Quinn, president and CEO of the National Mining Association, speaks to reporters Monday at MINExpo International in Las Vegas. Doug McMurdo/Elko Daily Free Press
LAS VEGAS - Every segment of the mining industry and the companies that support it remain in great condition despite a roiling stock market.
The optimism can be attributed to the unprecedented demand emanating from China and India; both countries and their billions of citizens are in an economic revolution.
So said Harold Quinn, president and CEO of the National Mining Association, during a “state of the industry” discussion Monday at MINExpo International 2008, the world's largest mining convention held every four years.
The NMA represents mining interests in Washington, D.C., and is one of the primary sponsors of the convention. More than 37,000 people from around the world are in attendance.
From salt and sulfate to coal and gold, virtually every substance humankind mines is represented, but it is the hardrock mining industry - which provides Elko with its strong economy - that Gary Goldberg discussed.
Goldberg, president and CEO of Rio Tinto Minerals, said gold, copper, uranium and other metals will remain strong markets, “even as commodity prices moderate from unprecedented highs (gold passed the $1,000 an ounce threshold in March and has vacillated between $750 to $990 since then).
Copper took an even deeper plunge, but Goldberg believes the metal will rebound “thanks to a tight supply” and the aforementioned demand from China and India.
Uranium demand is expected to increase dramatically as more nations turn to nuclear energy. Today the world demand hovers at 150 million tons. By comparison, 325 million tons will be required by 2025.
Also, the demand for potash, sulfate and chloride “will climb by 2 percent or better annually,” said Goldberg in prepared remarks.
While Goldberg acknowledged there is uncertainty and even fear over the stock market in the U.S. and other developed nations, the outlook for hardrock mining has never been brighter.
In addition to higher demand for gold, for instance, China will double its need for copper, nickel, zinc and platinum - meaning Chinese manufacturers will “soon account for more than half the global demand” for the majority of metals.
Mining equipment
Tim Sullivan, president and CEO of Bucyrus, said the international marketplace is driving demand. In 1976, roughly 80 percent of heavy equipment manufacturing was done for U.S. customers; today, the same percentage is international orders. “We've flip-flopped,” he said.
The U.S. heavy equipment manufacturing industry faces a huge backlog, with most clients coming from China, India, Brazil and Russia.
“The industry is growing by 6 percent annually,” he said. The demand for shovels, haul trucks and underground equipment is huge, he said, and the majority of it is headed to overseas operations.
Safety
From miners to the companies that make mining equipment, safety has taken the front seat in recent years, with the lofty goal of “zero accidents.”
“We're constantly looking for new ways to be safe,” said Goldberg, adding the need will only intensify as more mining operations open overseas, where regulatory controls are more lax.
Environment
“How we handled our green challenges is something we've been looking at,” said Goldberg. “There are a lot of legacy issues, closure and reclamation. We're also looking not just the natural environment, but what happens to the people who live there after we're gone.”
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