There is no denying that a pretty clear message is being sent when the world’s number one bullion producer attempts to buy a copper mining outfit. This is exactly what happened when Barrick Gold Corp put in a surprise bid for Equinox Minerals.
Barrick Gold’s bid for Equinox Minerals was apparently a surprise: It must have come as an even bigger surprise when Barrick’s bid was successful. This purchase is a significant move for Barrick Gold which had previously only dealt with gold bullion; this diversification may be the first of many moves into other parts of the mining industry.
Copper has hit new highs this year: It was being sold for $10,190 per tonne in February on the London Metal Exchange. These staggering price rises have been given impetus by the rising demand for copper. China already consumes approximately 40.0% of world copper and its demand has not stabilised. Various market commentators have said that they cannot see the copper market becoming depressed anytime soon.
Although China leads the field of copper consumers those following are hot on their heels. India is the second largest consumer of copper. Hungry pan - Asian consumption of copper boosts the market.
Barrick Gold now controls some of the most productive copper mines in the world including the Lumwana mine in Zambia which is the point of extraction for 1.0% of global copper supplies.
Predictions for the future of the copper market are generally positive.
豫公网安备41010502003434号