Mining Revenue on the Rise: Copper Prices Soaring along with Zinc and Cobalt
The world is currently facing one of the strongest manufacturing boom which is having draining impact on the commodities leading to commodity prices soaring to a 3 year high. Consequently, it has opened up numerous investment opportunities for investors who are pouring capital into copper, cobalt, zinc, etc.
Of all the metals, copper is definitely the winner with the metal ‘extended their longest winning streak to a 10th day to send London’s mega miners to the top of the FTSE 100 for a second straight day.’ (www.telegraph.co.uk ) Copper is having its strongest streak since 2009 and the four-year high has led to high estimations in terms of growth for 2018. High metal prices have had correlative effect on commodity stocks with mining giants like Rio Tinto leading the FTSE 100 leader board and big players such as KAZ Minerals, Antofagasta, Glencore, BHP Billiton, etc. all gaining from rising share prices.
The upswing of copper prices have led to a boom in the extractive sector of copper mining nations like Zambia. Zambia’s mining sector is projected to experience a boom in the next five years with EIU forecasting that from ‘this year to 2022 will be good years for the mining sector in Zambia with copper prices forecast to average US$300/lb, up from an average of US$275/lb last year.’ (www.daily-mail.co.zm/eiu-projects-sector-boom/) This positive trend in Zambia’s copper industry can help the nation overcome economic challenges and invest in developing the infrastructure supporting other sectors such as agriculture. A 5.5% growth rate is predicted per year for the Zambia mining sector make the country a haven for future investment. BMI forecasts total copper output to grow by 7% in 2017 to 792 000 t, with output reaching 922 000 t in 2021.
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Apart from copper, zinc has also has also been forecasted with a bright year ahead with 2017 being a very productive year. The price of zinc has hit a 10 year high as a result of China’s growing demand. The metal is used to coat steel to prevent rusting and is used extensively in China’s booming steel industry. It is estimated that prices will rise higher and estimations assess that prices will average $3,500 a ton between 2018 and 2020. In the short-term Zinc will hit between $3,143 and $3,227 a ton. Thus, making this an ideal time to invest in zinc.
Cobalt is another metal that has had a successful 2017 with the market continuing to rise in 2018. The metal is a key component of lithium-ion batteries which are used to power electric vehicles, hence the cobalt prices have gone up by almost 120% in 2017 due to the rising demand of electric vehicles and limited supply of the metal. 50% of the world’s supply comes from Democratic Republic of Congo and mining giant Katanga Mining is expected to bring new production into the market this year and then double it by 2019.
Learn more about mining investment opportunities and upcoming mining projects at: miningontopafrica