Resumen de Mixed outlook for 2013
"The capital strike by many mining and metals companies in the face of rising costs and softer prices in 2012 will continue until commodity prices recover sufficiently to encourage new investment," Ernst & Young's global mining & metals transactions leader, Lee Downham, explained.
The TiO 2 industry is going through a hard time too (see pp 20-21). TiO 2 pigment producers are hampered by feedstock prices and so further price increases from other major TiO 2 players could be forthcoming.
Rio Tinto' has already divested its talc business to Imerys and the Borax Argentina business to (Orocobre, as well as its vermiculite business (to South African and Chinese entities)), could it look to divest its TiO 2 feedstock facilities to a South African or Chinese source? This is extremely unlikely but with its $3bn loss in 2012 an injection of revenue could also be extremely beneficial.
