Anglo American CEO: Fundamental Mining, Metal Conditions `Outstanding'
Post Date: 30 Sep 2011 Viewed: 493
BELO HORIZONTE -(Dow Jones)- Fundamental conditions in the mining industry continue to be "outstanding" despite current volatility in the markets, Cynthia Carroll, chief executive of Anglo American PLC (AAL.LN, AAUKY), said Thursday.
Demand from China continues to uphold commodities markets and the mining and steel industries are still "very solidly in place," she told reporters at a mining event in Brazil.
"There was more and more volatility in the market in the first half and we will see more, the market's very nervous," Carroll said. "Nickel is one of the hardest-hit commodities, but the fundamentals of our industry are outstanding: we know China continues to forge ahead.
"The medium- to long-term outlook is very strong."
The company doesn't expect its customers to cancel any orders for 18 months to two years, she said, noting that steel production is growing, which boosts demand for iron ore and nickel.
Anglo is continuing with a broad $85 billion pipeline of projects for the next 10 years globally, she said. The company will have invested $14 billion in various projects in Brazil through 2013, she said.
Anglo is 'pausing' its Quellaveco copper project in Peru due to questions related water supply and the local community, Carroll said. The suspension isn't due to market-related reasons, she indicated.