Gulf Countries Copper Consumption Forecasts

ONE REGION WHERE GROWTH LOOKS ASSURED IS THE GULF, NOT JUST IN THE UAE AND THE KINGDOM BUT IN IRAN, THE LATTER I CALL A SLEEPING GIANT. COPPER CONSUMPTION SHOULD DOUBLE IN THE GULF BETWEEN LAST YEAR AND 2030.

JUST TO PUT SOME FLESH ON THAT STATEMENT. A COLLEAGUE RUNS THE LARGEST WIRE AND CABLE COMPANY IN IRAN. I EMAILED HIM TO SAY THAT I SENSE THAT IRAN’S ECONOMY AND COPPER CONSUMPTION ARE ABOUT TO TAKE OFF. THE REPLY WAS SHORT: CORRECT. I HAVE JUST BOUGHT A COPPER MINE IN IRAN. DON’T FORGET THAT NOT ONLY ARE RUSSIA AND CHINA ARE INVESTING HEAVILY IN IRAN BUT SO TOO IS SAUDI ARABIA – RUMOURED TO BE $50 BILLION - AND THE UAE.

MOREOVER, IRAN IS RICHLY ENDOWED WITH COPPER AND OTHER MINERAL RESOURCES. THOSE WITH LONG MEMORIES WILL RECALL SELECTION TRUST’S LARGE INVESTMENT IN THE SAR CHESMAH

MINE IN THE COUNTRY. NOW, A $15BN DEVELOPMENT PROGRAM HAS BEGUN TO TAKE PRODUCTION UP FROM 280KT LAST YEAR TO AROUND 1 MILLION TONS BY 2030, A PROGRAM PROBABLY BEING MANAGED AND FINANCED BY CHINA.