DGAP-News: North Thunder Bay Mining Co. Ltd.: North Thunder Bay Mining Foresees Shortage of Copper on the Horizon
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North Thunder Bay Mining Co. Ltd.: North Thunder Bay Mining Foresees
Shortage of Copper on the Horizon
06.04.2011 / 13:17
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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.
Underlying factors for upside potential to the cost of copper rest squarely
with the Asian Market. It is estimated that up to 25% of China's
population can now be considered as middle class, and this may double over
the course of the next decade.
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.
Disclaimer&Safe Harbor Statement:
This release may contain certain 'forward-looking statements' with respect
to certain of North Thunder Bay Mining Co.'s plans, goals and expectations
regarding its future financial condition, performance, results, strategy
and objectives. Words such as 'anticipates', 'expects', 'intends', 'plans',
'believes', 'seeks', 'estimates', 'may', 'could', 'would', 'might', 'will'
and variations of these words or similar expressions are intended to
identify forward-looking statements. In addition, any statements that refer
to expectations, beliefs, plans, projections, objections, performance or
other characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. Forward-looking
statements in this press release are not promises or guarantees of future
performance and are subject to risks and uncertainties that could cause
North Thunder Bay Mining Co.'s actual results to differ materially from
those anticipated. North Thunder Bay Mining Co. cautions the reader not to
place undue reliance upon any such forward-looking statements. These
forward-looking statements involve known and unknown risks as well as
uncertainties, including those discussed herein as well as the following:
(i) domestic and global economic and business conditions; (ii) market
related risks and the performance of financial markets generally; (iii) the
policies and actions of regulatory authorities; (iv) the impact of
competitive factors; (v) risks and uncertainties associated with future
acquisitions or combinations within relevant industries; and (vi) changes
in capital, solvency or accounting standards as well as tax and other
relevant legislation or regulations in the jurisdictions in which North
Thunder Bay Mining Co. operates. The actual results that North Thunder Bay
Mining Co. achieves may differ materially from any forward-looking
statements which are based on management's beliefs and opinions at the time
the statements are made. North Thunder Bay Mining Co. does not undertake
any obligation to update forward-looking statements should circumstances or
management's beliefs or opinions change.
For further information please contact:
Medrado Pineda, CEO
Telefon: +1-416-800-6000
Email: info(at)norththunderbay.com
http://www.norththunderbay.com
North Thunder Bay Mining Co.
1 Hunter Street East
Hamilton, Ontario
L8N 3W1, Kanada
End of Corporate News
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118665 06.04.2011
Datum: 06.04.2011 - 13:17 Uhr
Sprache: Deutsch
News-ID 33720
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