Peak Copper

If oil is the most important commodity, then copper cannot be far behind. Being used extensively in electrical power cables, electrical equipment, automobile radiators, cooling/refrigeration tubing, heat exchangers, artillery shell casings, optical fibre, water pipes, drain pipes, plumbing and even jewellery, this reddish-brown metal is a commodity that the world can ill afford to be in short supply of.

But the fact of the matter is that copper is yet another metal that is in a mining deficit that was predicted to be 700,000 tons in 2004 by the USGS 2005 summary. That would be about 5% of the estimated 14.5 million tons produced worldwide. As a result, stockpiles have reduced and prices have increased to over the $2 a pound mark recently. Ross Beaty, the chairman of Pan American Silver and Lumina Copper, recently commented that global copper production was approaching its own version of "Peak Oil" or shall we say "Peak Copper"?

When we look at the comparative reserve numbers for oil and copper we also get a sense of an impending dual peak scenario. Worldwide economic reserves of copper are stated to be 470 million tonnes by the USGS 2005 summary for copper. If the 2004 mine production figure of 14.5 million tonnes is held steady into the future, copper would be exhausted within 33 years. If we also assume about 1 trillion barrels of oil remains to be economically recovered worldwide with a current annual production of 30 billion barrels then we come out with a similar reserve lifetime of 33 years. Coincidence? Not if we realise that increased energy consumption means increased metal consumption. The two go hand in hand.

When might this peak come around? That is probably a little easier to calculate than oil since secrecy about copper reserves is much less prevalent. But the shocking news that Chile, which produces one third of the world's copper, may begin to decline irreversibly in 2008 suggests that as Chile goes, so goes the world. When Chile peaks, the world peaks. Sounds a bit like the peak oil mantra "When Saudi Arabia peaks, the world peaks".

Funny radio commercial

Posted by "armegeddon" on peakoil.com :

car dealer on radio said, " now that oil prices are coming down, and experts are saying they are even coming down further and to stay, it is now time to buy our line of new suv's. We are offering huge savings , so hurry now while they are still in stock. "

That was the funniest thing i have heard in a while. I had my laugh of the day, and it felt good.

- Yup, very funny :)

BellSouth cuts 1500 management jobs

news.yahoo.com :

BellSouth Corp, the third largest U.S. phone company, said on Thursday that it plans to eliminate 1,500 management positions across the company. The reductions will take place in supervisory and non-supervisory management positions, including staff support functions. Most of the reductions are expected to occur through the acceptance of voluntary severance packages and are to be completed by April 30, 2006.

"We have worked hard to avoid it, but many companies our size and particularly our competitors operate with lower overhead and fewer management layers," BellSouth Chairman and Chief Executive Officer Duane Ackerman said in the statement.

Google Base :
mass layoffs

(2005-12-16 10:26:53 SGT) [Biz] Permalink

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