Melbourne, Dec. 4 (Bloomberg) -- BHP Billiton, the world's
biggest mining company, said it will keep copper production below
mine capacity next year because of weak demand for the metal, even
as it increases output in Chile.
Overall copper production in 2003 will be 305,000 metric tons
below capacity, the company said in a statement. Output from
Escondida in Chile, the world's largest copper mine, will rise 38
percent in 2003 after a reduction this year, leaving production
200,000 tons below capacity, the statement said.
Copper futures traded in New York have risen 16 percent from
a nine-month low in October, partly on efforts by mining companies
to limit supply. Chile's Codelco, the world's biggest copper
producer, said last week it would stockpile 12 percent of its
output next year because of weak demand.
``BHP Billiton has shown its intent to try and alleviate the
surplus,'' said Glyn Lawcock, director of resources research at
UBS Warburg in Sydney.
Copper production worldwide during the first eight months of
the year exceeded demand by about 74,000 tons, according to the
International Copper Study Group. The company said it will re-
evaluate production plans in six months.
Production at Escondida will rise to 1.05 million tons in
2003 from 760,000 tons this year, BHP Billiton said.
Production Falls This Year
The mine produced a total of 597,018 tons of copper in the
first 10 months of the year, down from 674,839 during the same
period last year, according to a statement issued by the mine on
Nov. 18. The mine has the capacity to produce as much as 1.25
million tons of copper a year after an expansion project was
completed in October.
The company had said in November 2001 that it would slash
production from Escondida and Tintaya in response to weak demand.
Production at the Tintaya in Peru will be 90,000 tons below
capacity, the company said. The mine produced no copper
concentrate this year.
Melbourne-based BHP Billiton owns 57.5 percent of Escondida.
Rio Tinto Group owns 30 percent and a group of Japanese companies
led by Mitsubishi Corp. owns 10 percent. The World Bank's
International Financial Corp. arm owns the rest. |
