Island Copper, Zinc, Lead Mine Bullish For Future

by A N Timony

At its London AGM on 3 October, Anglesey Mining plc was positive about future group prospects in both iron ore and its copper, zinc and lead project at Parys Mountain.

In Labrador, Canada, Anglesey's iron ore project,which was succesfully floated on the Toronto Stock Exchange(TSX), is expected to start production in 2009.

While its Parys Mountain project near Amlwch sees continued negotiations with Western Metals Limited of Perth, Australia.

A major decline construction is planned to create access between a new processing plant and a 300 m deep shaft. When this proposed decline is completed, it should connect up to both the White Rock zone as well as the Engine Zone, which contains higher grade ore.

Givent he significant fall in zinc prices from around $4,500 per tonne in 2006 to around $1,600 in October 2008, the projected revenues from White Rock have fallen.

The company estimates that the projected income from copper and lead deposits in the other zones outside White Rock should balance this fall.

On the supply side, Anglesey is positive in the long term despite recent pull backs in global base metal prices.

A significant factor supporting this confidence is the fact that, according to Chairman John Kearney, there are no new zinc mines in the pipeline anywhere else in the world. In fact, most global zinc production is now from mines close to the end of their lives.

As for the demand side, the China story continues and despite current global concerns, this fast growing economy will continue to suck in base metals from the rest of the world.

To confirm this optimism from Anglesey Mining, a recent report and seminar by mining giant Rio Tinto, entitled "Value and Growth" was very positive about demand for copper, aluminium and iron ore for the next decade and beyond.

Rio Tinto cites the strong growth rate of urbanisation in China, higher even than projected GDP growth, as the main driver of global base metal demand going forward.

Overall, Mr Kearney is still positive for the future despite the present commodity price correction, citing that Chinese demand will keep base metal prices strong over the medium to long term.

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