Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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By Marc Davis and Gayle Mavor, BNWnews.ca As hot as the blast furnaces required to produce steel, China’s ever-expanding economy continues to fuel a seemingly insatiable demand for one of the building blocks of the modern world: iron ore. As a result, iron ore has once again been catapulted into the spotlight with prices surging to robust levels. With China representing approximately 63% of the market, and India’s needs nipping at China’s heels, iron ore supplies can’t keep up with demand. Especially since these emerging superpowers have limited domestic supplies of iron. Rajiv Chail, a metals and mining research analyst with Toronto-based Cormark Securities, says the strong iron ore prices we’re seeing today – along with increased demand – have spurred a surge in new development projects in emerging iron ore-rich countries, including Ukraine. (more…)
