Price stability seen for metals in short-term

Reasonable stability for base- metal prices is expected at least for the next few months, and possibly for the next year or two, says the chief executive officer of the Mining Association of Canada.

George Miller, addressing a recent Toronto mining seminar sponsored by the Prospectors and Developers Association of Canada, said that barring an economic recession, demand is not expected to collapse nor is supply expected to increase greatly.

The exception, he said, might be nickel which, in a tight market situation, topped $10(US) per lb this year and has been averaging about $6.25 in 1988, almost three times its 1987 average.

Canada, which produces about 60 minerals and is among the leaders in the production of numerous precious and base metals, will have to hold down costs and be even more competitive if it wishes to maintain its world position, Miller said.

The Canadian mining industry will have to adapt to a fast-changing marketplace, he said. Some minerals — asbestos is an example — have lost their dominance in the market because of health and environmental concerns. Technological innovation is important.

World financial markets have changed and Canada must learn how to participate to its advantage in these restructurings to sell its commodities. Most of Canada’s mining products depend on international markets, he said.

Continued emphasis will have to be placed on exploration for new deposits, he said, adding that Canada has had an excellent record in this regard for gold the past few years but a poor one for base metals.

The chairman of the Mining Association, N. B. Keevil Jr, addressed this issue earlier this year. While gold reserves have almost doubled since 1981, reserves for base metals have plunged (copper off by 21%, lead and zinc by 24% and nickel by 19%), he said.

Membership of the Mining Association comprises 73 member companies and seven associates involved in mineral production.