LONDON, Jul 31, 2008 (Dow Jones Commodities News via Comtex) -- AAUKD | Quote | Chart | News | PowerRating -- The balance of supply and demand should sustain strong prices for many of Anglo American PLC's (AAUK) key commodities despite the current challenges in the developed economies, the company said Thursday.

"It seems likely that the industry will be working hard for some years to keep pace with this sustained higher level of demand and that higher than inflation cost pressures will remain," Anglo American added.

On the supply side, Anglo American noted that a number of operational challenges across the industry have led to near-term supply being lower than anticipated.

This includes power availability in a number of countries, infrastructure bottlenecks, weather-related shortages and labor issues. At the same time, the mining industry is adjusting to the higher demand environment, Anglo American said.

This is despite weak near-term economic activity in the U.S., with the emerging markets and in particular China continuing to demonstrate strong growth.