upside of iron ore

They certainly don'e mention anything abou the 500million brides that might need diamond rings!!!

From news.com

We have long maintained that Chinese urbanisation is driving a permanent structural increase in energy and base metal demand, and fortunately for Australia we are very rich in both.''

A recent report by McKinsey Global Institute predicts China's urban population will grow from 572 million people in 2005 to 926 million by 2025 and one billion by 2030.

"In 20 years, China's cities will have added 350 million people - more than the entire population of the United States today,'' says the report, Preparing for China's Urban Billion.

"By 2025, China will have 219 cities with more than one million inhabitants - compared with 35 in Europe today - and 24 cities with more than five million people.''

With up to 50,000 skyscrapers to be built - the equivalent of 10 New York cities - and 170 mass-transit systems, China is going to need a lot of iron ore, copper and other natural resources that are buried underground in Australia.

Mr Legrand said the consensus view among analysts and experts was that we were currently at the peak of the commodity price cycle and that 2009 would be the earnings cycle peak.