While many wonder if the current softening commodities prices are a sign that the mineral industry is headed for a cyclical dip, there are others who maintain an optimistic outlook. One of the latter is Scotiabank‘s VP of economics and commodity market specialist Patricia Mohr, who made her optimism clear in a keynote address to the Economic Club of Canada this week in Ottawa.
“Over the medium-term, the ’emerging markets’ including China will remain supportive for commodity prices, notwithstanding this year’s slowdown,” she said.
In her address, Mohr examined the fundamental drivers of the mining business, particularly the role of China and other emerging markets. China is transitioning to a slower growth trend, but further industrialization, modernization and urbanization will continue to support demand for metals. She pointed to new mining plays such as iron ore in the Labrador Trough and chromite in the Ring of Fire as future drivers of a bullish economy in Canada.
Mohr’s remarks were made in conjunction with the Mining Association of Canada‘s annual Mining Day on the Hill, during which representatives of Canada’s mining sector met with politicians and officials to discuss opportunities in the mining industry and key challenges.
“Mohr’s comments underscore the major opportunity for Canadians to capitalize on new investments in the mining sector, estimated to be worth $140 billion over the next decade,” stated Pierre Gratton, CEO of the Mining Association of Canada. “Keys to success will be creating an enabling regulatory environment, proactively addressing skills shortages, investing in critical infrastructure to capitalize on new projects, and ensuring access to emerging markets.”
Visit MAC’s website at Mining.ca.