Metal prices surge as reserves fears are highlighted

By Ambrose Evans-Pritchard (Filed: 27/01/2006)

Mankind has already used up a large chunk of the metal ever likely to be found in the Earth's crust and will face a supply crunch once Asia catches up with the West, according to a new report by the US National Academy of Sciences.

The study found that 26pc of all copper ore thought to exist has already been lost, either wasted in milling, smelting and corrosion, or buried in landfills.

The report, drafted by geologists from Yale University, said there were enough ore reserves to meet immediate needs but warned of an inevitable shortage down the road.

"It is clear that scarcity value will raise the real prices of scarce metals and will stimulate intensive recycling well above today's levels," it said.

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