China, India to Power Commodity Demand

April 15, 2008
Anglo American predicts 4%-5% growth over next 10 years

Global miner Anglo American predicted on April 15 that the booming Asian economies of China and India would drive strong demand growth for commodities. "Over the next 10 years, we anticipate strong demand growth of 4%-5% annually for most key commodities, driven mainly by China, as well as by India and other developing countries," said Anglo American chief executive Cynthia Carroll at an annual shareholder meeting in London.

"This is likely to be bolstered by higher than historical real prices, tight supply and robust demand growth," Carroll said.

The group was "very positive" on the demand outlook for coal, copper, iron ore, platinum and palladium, she added.

Carroll, who has headed the Anglo-South African firm since March 2007, stressed that the mining sector would continue to suffer from high production costs, surging crude oil prices and staff shortages. The sector would also face further problems "related to assurance of electricity supply -- most critically in South Africa," she added.

Anglo American is the largest mining company in South Africa and generates about two thirds of its earnings there. In recent months, prices of gold, silver, platinum and palladium have surged on the back of tightening global supplies and ongoing power shortages in key producer South Africa.

Copyright Agence France-Presse, 2008

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