China's expanding construction industry will fuel an increase in demand for copper and drive prices higher, according to Aluminum Corp of China (Chinalco) Chief Executive Officer Xiao Yaqing.
The plunge in copper from a record earlier this year is a "short-term" decline, Xiao said at a meeting of the Asia-Pacific Economic Cooperation in Lima, Peru yesterday.
"The financial crisis has spilled over into the economy and economies are heading for recession," Xiao said. "In China, we're still building and need commodities. There will be demand to support copper prices."
Prices have fallen 63 percent in New York since peaking in May, as slumping equity markets sparked concern the global recession would curb demand for metals, Bloomberg News said.
The Beijing-based company's investments are long-term and don't depend on prices, Xiao said.
Chinalco is working on an environmental impact study for its US$2.2-billion Toromocho copper-silver project in Peru, Xiao said. The company aims to refine as many minerals as possible from ore at the central Andes deposit.
Chinalco has arranged a US$2-billion loan with China's Eximbank to develop the mine, which is due to produce 210,000 metric tons of copper a year by 2012.
(Shanghai Daily?November 24, 2008)
