SME Arizona Conference: Challenges And Opportunities In Mining

Attendees at December?s Arizona SME Section Conference at the Hilton El Conquistador Resort outside of Tucson, AZ were feeling optimistic and ready to get to work after a year of steady growth and recovery in the mining industry. During the two-day event (Dec. 5-6, 2010) and the preceding American Mining Hall of Fame banquet and awards ceremony, the focus was on copper, worldwide population growth and regulatory pressures, with several smart new projects featured alongside updates to traditional large-scale copper development projects. Keynote speaker Timothy Snider, chair of the University of Arizona?s Lowell Institute for Mineral Resources, hit the mood of cautious optimism when he analyzed the global demand for resources, using the case example of copper. Over the next 20 years, he said, the world?s population is expected to grow to 9.2 billion and the average annual per capita copper use is expected to rise from 2.2 to 4.5 kg (5 to 10 lb). The increase in demand will provide tremendous opportunity for mining companies, he said, but cautioned that the opportunities are balanced by negative influences on demand and pressures on supply. While demand for copper is currently growing, Snider noted that there were significant downward pressures on demand as well. These included a western world that is overbuilt, in-creasing use of substitute materials in new construction and the rise of wireless devices. He also noted new regulatory pressures, and pointed out that resource development now had to occur within a context of sustainability on several levels.