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China to drive commodities boom further
In an interview on ClassicFM @ 18:52 on Tuesday 15 May 2007
[miningmx.com] -- THE consumption of commodities was expected to rise as countries such as China continued to industrialise, according to Bruce Main of Ivy Assets Managers.
“Certainly if one looks at China into the future [we need to ask] how is that going to impact a country like South Africa, and how do we make money out of China growing? I think it comes back to the commodity story, which has been sound for a number of years,” said Main.
According to Main there was now major demand for commodities with very few new projects over the last seven or eight years.
“So there’s a situation where commodity prices need to go very high to encourage mines to spend on projects.”
Speaking on Classic Business, a week-nightly radio programme, Main said: “If we look at the mining sector in general what people don’t realise is that to bring a new operation on is a project that takes
many years. Unfortunately we’ve seen seventeen years of decreasing commodity prices, and no major new expansions.”
Main said bringing new capacity in South Africa took a long time.
“We run into issues such as does the country have an electricity supply that can supply the refineries, etc.”
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