Annual Report 2008 - Office National des Hydrocarbures et des Mines

$/b
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
Evolution of crude oil prices in 2008
1997 1998 1999 2000 2001 2002 2003 2004
Annual average
* Brent, Rotterdam quotation
International mining environment : a
reversal of situation after historical records
The international financial crisis and the
slowdown of the world economic activity have
led to a drop in demand especially of industrial
metals.
After pulverizing all high records, base metal
prices started a decrease from the summer
2008 and came back to 2004 -2005 levels.
Thus, the average copper prices dropped
by 3 % compared with 2007 ; those of lead
and zinc fell by 19 % and 43 % respectively,
compared with 2007. On the other hand, tin
improved its performances by posting an
average of US$ 18 467 per tonne in 2008
against US$ 14 513 the previous year. Precious
metals prices maintained their upward trend
started two years before and gold recorded
Activity Report 2008
2005 2006 2007 2008
Source : IFP
an average increase of 25 % compared with
2007 ; the rates of gold increased by 12 %.
The consequences of this reversal in the
international environment begin to be felt.
Thus, the Anglo-Australian group BHP Billiton
has recently given up its takeover bid hostile
to its compatriot but competitor Rio Tinto. On
the other hand, Arcelor-Mittal, the largest steel
company in the world has recently announced
production and job cuts in its steelworks
throughout the world.
However, worldwide nonferrous and precious
metals exploration budgets reached US$
13.2 billion in 2008, up 26 % compared with
2007. This sixth consecutive yearly increase
is accounted for by the unprecedented levels
of global metal prices reached over the last
years.
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