Mineweb Watchlist

To save your Watchlist, log in to Mineweb.com. You may proceed without logging in but all changes will be saved to cookies - this may only last for one browsing session depending on your device settings.

$50 BILLION DROP IN CAPEX FOR MINING

MINING FINANCE / INVESTMENT

Credit crunch threatens mining projects – Credit Suisse

The credit crunch has put $50 billion of capital expenditure for new or expending projects at risk, according to Credit Suisse.

Posted: Monday , 27 Oct 2008

LONDON (Reuters) - 

The credit crisis risks delaying around $50 billion of the mining sector's capital expenditure used to fund new or expand existing projects in 2009, Credit Suisse said on Monday.

Limited access to financing may impact the construction of some 300 million tonnes of iron ore, 5 million tonnes of copper, 10 million tonnes of aluminium and over 1 million ounces of platinum, which could be delayed 2-3 years, a report said.

"We think up to $50 billion of the $75 billion scheduled for 2009 is likely to be deferred for at least a year," it said.

This could then delay a further $150 billion scheduled between 2010 and 2012, the bank's said.

"The potential delay of such capacity is likely to plant the seeds for the next bull market, especially given that the recent 5-year bull market did not see large scale capacity additions with the exception of iron ore," it said.

The delayed projects represent around 66 percent of next year's spending plans, and for iron ore it would affect some 35 percent of the current seaborne market.

"The most affected miners are likely to be those with excessive debt like Xstrata and the juniors who have limited access to financing," the report said.

 

(Reporting by Anna Stablum, editing by David Evans)

© Thomson Reuters 2008 All rights reserved

 

 

Tags: Credit crisis, financial instability, market turmoil, financial uncertainty, capex, Credit Suisse, capital spending, new mining projects, mine expansions, mining project expansions, mining project development

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Managing Editor, and we will include you in our editing and expanding on our stories. Email him at geoff@mineweb.com

10 May 2013


OTHER PAGES:  EUROPE AND MIDDLE EAST
BackBack

Companies and Precious Metals' quotes delayed by at least 15 minutes.
Base Metals data is previous day pricing.

Upcoming Conferences
More 



Share your feedback

Thank you for visiting Mineweb.com. We are conducting a quick three minute survey to help better understand our visitors. All responses are anonymous and for research purposes only.

NEXT ON MINEWEB X