It's all based on projections and economic conditions.......analyst are conservative predicting marginal growth for copper. China is the elephant in the room, and the big question is which way it is going....this dilemma puts a lot of risk on the table for commodity brokers. Contracts for copper on shorter cycles until real long term demand shows positive over two or three quarters time.
SCCO is smart to increase copper mining reserves for the future demand. That said, it does not mean the are going to mine more tons of copper ore this year or next at these cheap prices. My view they will mine less copper ore than last year, and the same may continue through 2014.
Without a big project using copper there is only a level playing field. Now if science needed to speed up some particles we might have a chance to capture improved outlooks. Who cares if nothing gets built the stockpile at lower prices might look good on some way out project.