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ZURICH (Thomson Financial) - Base metals and other raw materials prices are set to maintain their current highs amid huge demand from China and India, Xstrata PLC chief executive Mick Davis said.
To meet rising demand from China alone, global copper output must double over the next eight years, Davis said in a speech at a symposium at the University of St Gallen, Switzerland.
However, the mining industry faces difficulties in supplying these markets, as the current boom had not been anticipated, he said.
With lower investment in personnel, exploration, research and development during less prosperous years, mining companies will have to consolidate to meet demand, he added.
Commenting on continuing consolidation in the mining industry, Davis said mining companies must reach "critical mass" to handle rising global demand.
Xstrata recently acquired Canadian copper and nickel producer Falconbridge in a deal worth 21 bln sfr.
However, Xstrata over the weekend said it will not match Norilsk Nickel's takeover bid for LionOre, while it has extended its current offer of 25 cad per share until June 15 2007.
Xstrata's offer has been trumped by Norilsk Nickel, which is offering 27.50 cad per LionOre share.
ZURICH (Thomson Financial) - Base metals and other raw materials prices are set to maintain their current highs amid huge demand from China and India, Xstrata PLC chief executive Mick Davis said.
To meet rising demand from China alone, global copper output must double over the next eight years, Davis said in a speech at a symposium at the University of St Gallen, Switzerland.
However, the mining industry faces difficulties in supplying these markets, as the current boom had not been anticipated, he said.
With lower investment in personnel, exploration, research and development during less prosperous years, mining companies will have to consolidate to meet demand, he added.
Commenting on continuing consolidation in the mining industry, Davis said mining companies must reach "critical mass" to handle rising global demand.
Xstrata recently acquired Canadian copper and nickel producer Falconbridge in a deal worth 21 bln sfr.
However, Xstrata over the weekend said it will not match Norilsk Nickel's takeover bid for LionOre, while it has extended its current offer of 25 cad per share until June 15 2007.
Xstrata's offer has been trumped by Norilsk Nickel, which is offering 27.50 cad per LionOre share.
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