Just a note on the so-called long-term metal prices used by this report.

I remember in early 2006 when the forecast for the price of copper in 2007 was that it would fall to the long-term price of a whopping $1.25/lb. (Price now is about $3.35.)

Several problems exist with the lower long-term price assumptions, including some issues raised in their own report.

1) Huge demand growth in China (even this report notes that growth) and in India - especially in infracture requirements - that shows no sign of abating. Some economists believe we have 10-15 years to run in this cycle.

2) Rising costs in mining due to higher fuel costs, salaries, etc.

3) Rising costs in mining due to tapping lower grade ore. (Obviously this will not be an issue for DE.)

4) The inability of the mining world to bring on-stream sufficient new capacity to meet the rising demand. This is in part because of the low prices and the correspondingly low investment in the 1990's and the early part of this decade. This, in turn, was partly the result of the collapse of the Soviet Union, the corresponding collapse in demand in the eastern block, and gradual release of Soviet metal stockpiles to the market.

The assumption of significantly lower long-term metal prices is a trap used by economists who do not understand how the world economy has changed.