Gets scarrier Norilsk's chief ecconomist in a press release yesterday dropped a bomb shell by admitting they can't increase production in a meaningful way to relieve shortages of Nickel. He went further to say we have reached an end of an era when metal production could keep pace with demand, and entered a new era of rising prices based in higher energy costs and declining reserves.
Doesn't sound scary but read into it a little deaper....
The Russian govermant is moving towards renationalising Norilsk because its a stratigic asset thatthey want to be able to hold in reserve the hoarding is about to begin.
Current LME stocks are at the lowest in history with less than one day in reserve.
If we did one thing right when oil was cheap was mine and refine at least the energy went to good use, metals can be recycled forever. Now the expensive stuff like energy intensive laterite ores make up the majority of what remains.
Its not the end of the world, it just means we need to get used to the idea of making do with cheaper low grade materials that cost more and we'll have another reason to ajust our standard of living
Doug.
