Island Base Metals Miner Looks To Upturn
by A N Timony
Anglesey Mining is confident that it can pull through the current global economic slowdown, which has seen significant falls in base metal prices over recent months.
In its Interim Report the company announced losses of £444,430 for the six month period (2007: £196,435).
According to Company Chairman, John Kearney, the global slowdown has had a major impact on the company which mines zinc, copper and lead at the Parys Mountain location on the Isle of Anglesey.
With Chinese demand falling so precipitously, this has had a a knock-on effect on base metal producers across the globe.
An example of this being that London Metal Exchange copper inventories have never been so high since March 2004.
Until economic activity and so demand picks up, these high stock levels will depress prices and so mining company profits.
Talks with Perth-based Western Metals Limited (WMT) for the takeover of the Parys Mountain site fell through in October.
Anglesey also has a 50 per cent interest in an iron ore mine at Labrador in Canada, which is at an advanced stage.
Mr Kearney said that though iron ore spot prices had fallen, in line with other base metals, the company reasonably expects to complete most sales at annually agreed benchmark prices.
The influence of China is again key for iron ore as well as the zinc, lead and copper to be mined at Parys Mountian.
With the Chinese Government announcing a $586 billion economic stimulus package focusing on infrastructure, the demand for base metals should pick up in the near term.
Added to this is the recent decision by the People's Bank of China to make a significant cut in interest rates, which should also help the recovery.
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