Lack of good projects puts mining boom at risk
Madan News Agency - After years of suffering, the mining industry is finally somewhat bullish on its own prospects.
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Madan News - Senior executives at the Reuters Mining Summit this week reported a pronounced lack of good new projects of the kind that last for decades and make a company’s fortune.

“Trying to discover a new Voisey’s Bay is a needle-in-a-haystack exercise,” said Aaron Regent, chief executive of zinc miner Falconbridge Ltd. FL.TO, referring to Inco Ltd.’s N.TO giant nickel deposit in eastern Canada. “We’re all trying to scale up and get more volume through.”

That sentiment extends across segments of the mining industry, into precious metals as well.

“Discoveries are becoming harder and harder to find,” said Greg Wilkins, chief executive of Barrick Gold Corp. (ABX.TO). “I think the mining industry has less flexibility today than it did five years ago in grade management.”

The mining companies that presented at the summit largely agreed that, in the short term, they are well placed, with facilities to mine and projects to develop. But just beyond the horizon, they say, a much more serious risk lurks.

“The scarcity of good exploration projects is going to become a serious issue three to five years from now,” said Donald Lindsay, chief executive of top zinc miner Teck Cominco Ltd.

 

Source: Reuters


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