John O. Marsden: An interview with the 2014 SME President

We have lived through a period of strong metal pricing during the past eight to 10 years. Copper has been hovering in the range of $3-$4/lb during much of the past eight years, averaging close to $3.30/lb. Gold increased steadily from less than $300/oz levels in the early 2000s, reaching almost $1,890/oz in the third quarter of 2011, before tempering back down to the $1,200-1,400/oz range in 2013. Iron ore prices started to rise in 2005 before the staggering increases experienced in 2008- 2010, reaching almost $190/metric ton in early 2011. During the past four years, iron ore prices have ranged from $100-180/t, averaging approximately $140/t. In the aftermath of such a run, it is perhaps too easy to forget where we have come from: The copper price averaged just 77 cents/lb during the six-year period from 1998 to 2003, and averaged just over $1/lb from 1989 to 1997. The gold price averaged $350/oz during the 10-year period from 1994 to 2003. Even more dramatically, iron ore traded in the range of $10-$15/t between 1985 and 2004. So, we have seen sustained, three- to four-fold increases in copper and gold prices, and 8 to 10-fold increases in iron ore prices.