In a normal market, the marginal producer, the one who provides the last bit of supply, is the high-cost producer.

He's eager to take his company on the offensive by "consolidating sources of supply and then going after the customers of the high-cost producers."

Scott, one of Britain's high-cost producers, was badly hit by that country's faltering economy and thriving green movement.

It has a mix of low- and high-cost producers.

But governments around the world, including and especially the United States, continue to protect the high-cost producers.

Throughout the 1970's, Kodak ignored the fact that it was becoming the high-cost producer in many of its markets.

But the company remained a high-cost producer.

The fear was that the United States, as a relatively high-cost producer, would have a difficult time competing.

"They used to be a high-cost producer," he said, "but they have added new efficient capacity and cut out the inefficient plants."

"Well-run companies can make money in the $400-an-ounce range, but if it gets much lower, it's going to shake out the high-cost producers," he said.