First of all lets take stock of the present position ! The world is in such a deep recession that although newly mined material in many circumstances does not nearly cover the present use of these minerals and metals and in other instances just about does.
Where then is the supply coming from ,one may ask? Obviously from stock piles built up in the past years.
Prices are very low and in some instances continue to fall. Production is falling even faster and in some cases there are delays in being able to have a continuity of supply. In the past alarm bells would have been ringing and money that is needed to ramp up production would be forthcoming for the obvious boom to follow!
Not this time as governments have messed up their economies with quantitative easing etc. spending and printing money they have no backing for and it seems keeping the recession/depression going ad-infinitum!
The good news is that we need these mined products to keep and expand our lifestyle as populations in developing economies keep growing and in first world countries grow older.
Eventually demand will return and then there will be explosive activity to try to supply these products in the shortest time.
To make ends meet mines are sticking to old methods at the moment and to ramp up sustainable production would take at least five years. Billions of US$ would required to start new workings would take at least a ramp up period of ten years to reach full production in most ventures, but first investors must be sure that there must be a sustainable need for that particular metal or mineral!
