- Published: Friday, 27 May 2011 01:00
- Written by John Miller
Speaking after a very successful Ozmine 2011 in Jakarta, David Twine says that in a recent Australian Bureau of Agricultural and Resource Economics (ABARE) research project, Indonesia was rated, by a significant margin, the most important export market for Australia’s mining, equipment and technology (METS) services companies.
The short-term forecast for companies producing copper, as well as those about to start producing, looks extremely bullish with demand growing faster than supply. The copper market is facing a widening deficit in 2011 and 2012 until new supply comes on stream in late 2013.
Standard Bank's head of commodity research Walter De Wet recently reiterated this message, saying, “After last year’s deficit, we project the deficit to grow to 385,000 tonnes for 2011 and 562,000 for 2012, so clearly demand is growing faster than supply and will remain strong until 2013.
INDONESIA looks certain to replace Africa as the next mining investment story. It could be this year or maybe next but it will happen. Although investment has a patchy record, due to red tape, corruption and the Bre-X scandal, it seems the world’s third most populous nation has turned the corner. It is rich in resources, has a new mining law and there is huge demand from China, India, and traditional powerhouses South Korea and Japan.