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Cameron McRae: Copper Prices Are In Bull Market Territory And Will Continue to Climb

Cameron thinks the recent run-up in price has been long overdue. He thinks the copper price will go higher and stay there for longer and that demand will continue to be robust. The demand-supply balance is finely tuned, and the sector has been spoiled for some years with no supply disruptions. He says there is unpredictability with mining in Indonesia right now.

Declining grades and resources at the worlds best mines ensure there is a significant upside in demand coming. The mining industry has been focused on cost reduction for the past several years, and Expansion budgets have been slashed. The supply deficits will have to come from places like Peru, Congo, Zambia, and Russia. Hardly places that risk adverse financiers would regard as safe.

He discusses Oyu Tolgoi now Mongolia’s largest mine. Phase one of the project took over 15 years and cost one billion dollars. Then there was six billion in investment creating the mine and supporting infrastructure. When the underground part of the project is completed, the mine will still represent less than 3% of worldwide production.

Cameron discusses in depth the economic and government factors to development in Ecuador and Mongolia. He is quite happy with the overall outlook for the future of mining in Mongolia and discusses a couple of companies with potential for prospects there.

He has been involved with Kincora (CVE:KCC) and is a believer in the Southern Gobi region having major discoveries. They have some exciting targets that they have just begun drilling.

Talking points from this week’s interview:
• The prospects for the copper price remains very strong.
• Supply deficits are likely to be an issue as exploration budgets were cut.
• Jurisdictional challenges with governments and infrastructure problems remain.
• Cameron feels that Mongolia is a safe bet for investors.

Cameron has an extensive career in the mining industry globally. He is from Australia and was schooled in both Australia and Africa and obtained an MBA (Monash University/ Mount Eliza) and a Bachelor of Financial Administration (University of New England).

Cameron served a 28-year career at Rio Tinto, holding executive-level positions in 5 countries. Cameron was CEO-President of Oyu Tolgoi (OT) copper-gold business in Mongolia, CEO of Richards Bay Minerals in South Africa, Managing Director of Murowa Diamonds in Zimbabwe. He is currently Chairman of TerraCom Limited and CEO of Tarva Investment and Advisory. He is also President of the Institute of National Strategy in Mongolia.

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