摘要
There is a huge mining investment bubble. Investors in the min ing sector have extrapolated the high prices of recent years into an infinite future and poured mas sive funds into the exploration,development and extraction of mineral resources. However, the high minerals prices are a tempo rary phenomenon, supported by over-investment in China and the global liquidity boom. With China＇s over-investment unwinding, the prices of mineral resources have been dropping sharply. Because the investment cycle in the mining sec tor is long, it cannot turn around quickly and supplies are continuing to increase, despite the declining prices. This dynamic will make the industry depressed for many years, possibly a decade, to come.
