On the money

Mines and Money Hong Kong is where mining companies from around the world come to raise capital in Asia and meet with investors from Hong Kong and mainland China. The event has become a must go for everyone engaged in the industry at a time when every dollar has to be fought for.

The conference this year seems to be doing a great job in raising confidence among the investor community, which has been increasingly inclined to scratch its head at the sight of a junior mining company. The question is, how long will prices hold. The song they all want to hear was rendered this week by Tim Goldsmith, Global leader on mining strategy at PwC when he said with asperity: “I don’t get it all this negativity. I think that really we should be extremely positive, particularly in the resources sector.”

Goldsmith believes the industry has a long and bright future and that it has to stop obsessing about the economic troubles of Europe and the USA. “What actually happens in America isn’t that important in the mining world,” he said. You wouldn't have heard that a couple of years ago, even in Hong Kong. The focus should be on China, where 50 percent of demand for commodities comes from now, and on Asia, India and Africa where it will come from in the future.“We are in the early stages of the industrial revolution of five billion people for the world,” he said adding that the enablement of the internet drives the demand for a far better life. “They are going to demand that of their government to provide it to them and we are going to build cities to house those people.”

And don't worry that even China's massive economy made a slow start this year. China International Capital Corp Ltd’s (CICC) managing director of research, Dr Kong Qingying said that despite recent economic data out of China that included higher than anticipated inflation figures, CICC still expected eight percent growth in the country for 2013.