By Carole Vaporean
NEW YORK (Reuters) - Lundin Mining Corp. (LUN.TO: Quote, Profile, Research, Stock Buzz) takes a bullish view of base metals prices and sees nickel as the star performer amid delays in new supply and rising global demand, its vice chairman said on Wednesday.
"My view is that it's being driven by the impact of China, supported by increasing demand in India, Brazil and the emerging nations," Colin Benner told the Reuters Global Mining and Steel Summit.
Speaking by phone from Lundin headquarters in Vancouver, Benner said he thinks nickel, copper and zinc are in a long-term bullish cycle, driven by strong industrial and consumer demand, especially in emerging markets.
"There's just not enough product out there to satisfy their needs," he said. "I'd suggest that will keep prices buoyant for some time to come."
Judging by thin inventories, Benner said he thinks nickel, used primarily in stainless steel, will be the star.
Lundin is making its foray into the metal with the planned acquisition of Rio Narcea Gold Mines Ltd. RNG.TO.
"We're doing it cautiously," he said. "We're moving into sulphites and we suspect that we'll stay in that space for awhile."
Large laterite deposits, developed to fill robust demand for nickel, did not ramp up as rapidly as projected. A resulting shortfall in the raw material began starving smelters, Benner said. Continued...
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