The Prospectors and Developers Association of Canada (PDAC) brought together the who’s who of the mining fraternity at the world’s largest mining convention as over 22,000 delegates attended the event. PDAC executive director Tony Andrews said that mining was a cyclic business and that it was currently on a major upswing thanks to the rise in commodity prices.
Of the speakers at the convention Chief Operating Officer Alex Black of the Rio Alto Mining firm said that it expected its first gold production from its La Arena project by end April. The exploration company is looking to expand the size and scope of its project in Peru. They seem keen to take advantage of the high prices of gold while they last.
HudBay Minerals Inc. chief executive officer David Garofalo reminded everyone that the industry may be in for a down turn. He said that we are not in a super cycle, this is a cycle and when the central banks find religion on inflation again, the cycle will be over.
A fact that seemed to be echoed in his statement by Osisko Mining Corp. chief executive officer, Sean Roosen. Mr Roosen said construction costs had gone up by 10 to 15 per cent at their gold projects in recent months, and the company is budgeting for oil prices of $120 to $140 per barrel in the near term.
However the majority of the miners were upbeat as the developments in China made them believe that the infrastructure development there and in other Asian nations will continue to fuel the demand in the commodities market.