North Thunder Bay Mining Co. Ltd.
North Thunder Bay Mining Co. Ltd.: North Thunder Bay Mining Foresees Shortage of Copper on the Horizon
North Thunder Bay Mining Co. Ltd. / Key word(s): Miscellaneous North Thunder Bay Mining Foresees Shortage of Copper on the Horizon Toronto, Canada – (For immediate release) – April 5, 2011 North Thunder Bay Mining Co. Deutsche Börse symbol: 84N (www.norththunderbay.com), expects that there will be short-term uncertainty in the copper market, but ultimately, demand will start to drive prices higher in the mid to long-term. In the short-term, the price of copper seems to be drifting in the $4.25 per pound range, and is 8% off the historical highs of February by about 8%. Short term uncertainty turns on several factors. Chinese demand is currently soft, with the Chinese government trying to slow down the economy by raising bank reserves and interest rates, in the hope of keeping inflationary pressure under control. Further, there is some speculation that China has built up significant copper inventory which can translate to reduced importation and softer demand in the immediate future. The natural disasters in Japan, and uncertainty as to how long an interval will pass before rebuilding of the devastated regions of the country will start to take hold, is another key factor. However, once the rebuilding of infrastructure begins, there will be a surge in demand. As the middle class continues to grow, there will be increasing demand for better housing, which will drive increases in residential construction. Demand will come for more electricity and plumbing as well as electrical appliances, all of which demands more copper. China is also committed to spending nearly $600 billion on such projects. Additionally, India is projected to spend over $500 billion by 2015. Looking at the total Asian market, (excluding Japan) spending on infrastructure and residential sectors could see investments of roughly $1.4 trillion in the next few years. CG/LA Infrastructure LLC, a Washington-based construction consulting firm, expects China alone to account for over 28% of global infrastructure spending over the next two decades. On the supply side, there have been no new major discoveries of copper in recent years. Any new discoveries will take time to develop, creating a significant lag between the time of discovery to bringing mines into production. The Royal Bank of Scotland (RBS) estimated that global copper production will increase an average of just 4% for the next three years. It cites declines in ore grades at existing mines and a scarcity of big new copper projects. It also estimates that global mine production of copper rose only 15% in the period from 2002 to 2008 in spite of copper prices quadrupling during that time. Management believes that ultimately, the expanding economies in Asia will drive prices higher, and there will be a significant lag until new mines are brought on stream, which will drive prices higher. On this basis, the Company is aggressively pursuing partnership opportunities to start to bring its copper resources into full scale exploration and development. End of Corporate News 06.04.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
118665 06.04.2011 |