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On The Influence Of Metal Prices On Mining Investment In Argentina

Nov 18, 2014

Argentina ABECEB consulting firm's latest report said that since 2002 the rate of return on the growing mining investment are driving more and more enterprises to expand investment scale in Afghanistan.

Reported that in 2002 to 2010 Argentine mining exploration investment increased by nearly 500 percent, in 2011 investment grew 63%, with total investment of $ 18.2 billion, investment expanding the main reason is that risk-reward ratio improving makes a lot in the past does not have development value the deposits now have the economic feasibility.

In 2002 to 2011, the international market, said gold prices rose 407%; silver prices rose 663 percent; other bulk metals prices increased 323%. Although between the end of 2008 and full year 2009, by the international financial crisis precious metals prices plunged 19%, but in 2010-2011, prices rebounded and showed a rising trend.

The report analyzes, as aluminum prices rise, global mining companies increased exploration and exploitation of mineral resources in the Arab efforts, despite the increase in production capacity may inhibit the formation of market prices, but in the rising market, these companies are willing to try to exploit some success a lower rate of deposits, an increase in investment to enhance production capacity at the same time, the marginal cost has not decreased, many of the critical point between mineable deposits due to low productivity makes the overall exploration and mining unit costs continue to rise.