MINING IN CRISIS - THE LONG TERM VIEW
CIM Vancouver 2016
Mr Sean Waller (President - Candente Copper Corp.)
The past three years have been particularly difficult for most sectors in the global minerals industry. The industry downturn has seemed all the more painful given the extended period of incredibly strong growth and unconstrained optimism that preceded this downturn. Adding to the pessimism is the extremely difficult environment for the global oil and gas industry and reduced economic growth in China and other countries.
Given the current extreme negativity in the minerals industry…is there anything to look forward too - what is the long term view for the minerals industry?
If one considers that the global population will continue to grow, standards of living, especially in developing countries will continue to improve, and technology will continue to develop, it is clear that the demand for commodities will continue to increase. Layer onto this decreasing grades at operating mines, the difficulty in finding new economic mineral deposits, and the current lack of investment in mine development, it is easy to foresee that for many commodities future supply will be insufficient to meet demand. Collectively, these factors will lead to positive long term fundamentals for the mining sector. However, even though the long term view for the minerals industry is very positive… it is almost certain that the cyclical nature of our industry will continue. This paper will review global and corporate factors that will impact the long term view.