One of Australia's biggest mining and energy investors says...

One of Australia's biggest mining and energy investors says thelithium boom is reminiscent of previous boom and bust cyclesin uranium, rare earths and graphite, and he warns that the majority companies vowing to supply the world with lithium will not convert the price boom into a sustainable business model.
Lithium Carbonate prices in China have more than quadrupled over the past year on the back of stronger demand from traditional consumers in the ceramics and glass industry, and on hopes that modern battery technology will dramatically increase demand for the commodity.
The price boom has seen scores of ASX-listed juniors switch from developing other mineral deposits to lithium over the past 18 months, but Todd Warren and the Global Resources team at Colonial First State Global Asset Management (CFSGAM) have not exposed any of the $2.5 billion they manage to Australian pure-play lithium miners.
"We see it not dissimilar to previous boom and bust cycles in various commodities, and certainly the 'commodities of the day'," he said.
"We have actually seen lithium have a run before and suddenly everyone has got lithium deposits that they are looking to exploit and I am here to tell you when you suddenly have got a couple of hundred lithium companies in the world, I can assure you that 99 per cent of them haven't made a real go of it.
"Do I think this time is going to be any different? No. We have seen the same thing in uranium, the same thing in rare earths and graphite, so I don't see this as being necessarily any different to that.
"The reality is you can go explore for a commodity but when you have got to permit, construct and then produce, things get dramatically more difficult."
But Warren's caution toward the growing flock of lithium juniors should not be mistaken for a lack of belief in the potential for lithium ion batteries to disrupt the energy sector.
Read more at the AFR ($).

A Tesla battery pack. Lithium miners have become a dime a dozen as they push to capitalise on the trend towards new battery technology. Photo: RICH PEDRONCELLI