Sorry but I'm not going to turn this site into an "exotic" one!

I would like to commend both Bentonstock and Misfit1 for their recent posts. Both were extremely informative and somewhat provocative.

There is an old saying in the mining industry...."Only the lowest cost producers survive". This was hinted at in an earlier post, sorry I have forgotten who, that it was the driving force between Falconbridge and Inco for control of Voiseys Bay. There couldn't have been a better recent example which was played out in such a spectacular fashion by the "duel of the titans of the nickel market".

Some discussion re supply/demand and also reserves. A point to remember that in the mining game, increased prices are usually followed by increases in "reserves". Why? Because higher prices mean that lower grade deposits now become economical to mine and more mining companies are entering the search. However, over time, commodity prices normally go through price cycles and lower prices will then prevail and these lower grade deposits which came into production during a period of high commodity prices will fall by the wayside. When the dust settles, its only the low cost producers which remain.

Just some observations. Please don't hype the chromite just yet.

Respectfully submitted

geoprof