We have it!!!

Bloomberg quoted Ivanhoe Mines Limited as saying that copper will outperform gold because of Chinese demand and the nascent electric car industry.

Mr Robert Friedland chairman of Ivanhoe said that “We need more copper in the next 20 years than was mined in the last 110 years. Those of us in the business don’t have any idea where this metal is going to come from.”

The Oyu Tolgoi mine, described by Rio Tinto as the world’s largest untapped copper and gold resource is expected to produce an average 1.2 billion pounds of copper annually for the first decade. Copper futures in London and gold prices have gained 23% and 25% respectively in the past year.

Mr Friedland said that China will always remain the future for miners. In the next 20 years the world needs 600 million tonnes of copper metal, absent the phenomenon of electric cars. Cars are going to be electric.


Source: Steel Guru, Bloomberg