FACTBOX-Major copper supply disruptions
Thu Apr 10, 2008 4:31pm BST
uk.reuters.com
LONDON, April 10 (Reuters) - Copper prices have been underpinned in recent years by unexpected production losses due to technical woes, accidents and strikes, keeping supply tight and deferring a predicted move into sizeable surplus.
Stoppages have continued to help support prices in early 2008.
Following is a rundown of recent major disruptions to copper production and projects, as well as company predictions of lower output due to problems such as falling ore grades:
March 31 - Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research) saw copper output down at its Cananea mine in Mexico as striking workers continued a blockade to stop temporary contractors entering the pit, a source close to the company said. The next day the company said plans to reach full output by May could be stifled by the new blockades.
March 27 - U.S. mining group Newmont Mining Corp. (NEM.N: Quote, Profile, Research) said copper from its Batu Hijau unit in Indonesia might be lower this year because it is mining lower grade ores. The mine is expected to produce 345-365 million lbs of copper in 2008, down around 22 percent from 453 million lbs in 2007.
March 25 - Chile's Codelco forecast its output would fall by 6.3 percent in 2008 from a year earlier, but predicted a production rebound in 2009 and 2010.
March 14 - Workers end a four-day strike at Inmet Mining Corp's (IMN.TO: Quote, Profile, Research) part-owned Ok Tedi mine in Papua New Guinea. Lost production put at 2,500 tonnes.
March 3 - Workers at Zambia's Chambishi Smelter went on strike, delaying construction works at the new Chinese-managed copper smelter. The company fired staff following riots at the plant, but agreed to reinstate most workers, excepting those it held responsible for the riots, on March 10. A company official said operations were back to normal and construction of the 150,000 tpy plant had resumed.
Jan. 31 - China's top integrated copper producer Jiangxi Copper Co Ltd (0358.HK: Quote, Profile, Research) said it will shut down 43 percent of its smelting capacity amid power shortages and transport chaos. The company expected capacity to remain shut until mid-February, which could see lost output of about 12,500 tonnes. Problems also affecting other producers such as Daye and Shuikoushan. In early March, Jiangxi said it had made up lost production.
Jan. 28 - Grupo Mexico said copper production dropped 30 percent in the fourth quarter of 2007, largely due to the five-month strike at its Cananea mine. On Jan. 11 a government labour board declared the strike illegal and the company retook control of the mine. A court soon after prohibited the company from firing any worker until the case is resolved. The mine lost 80,000 tonnes of copper production last year.
Jan. 24 - Zambia's copper output for 2008 could be hurt by a power crisis, which has forced rationing and suspension of operations at copper mines, the head of the Zambia Chamber of Mines said. On Jan. 30, the country's largest copper producer Konkola Copper Mines (KCM), majority-owned by Vedanta Resources (VED.L: Quote, Profile, Research) said it had resumed production at some of its units after the crisis eased.
Jan. 23 - The Antamina copper-zinc mine in Peru was operating normally, but the company said it was evaluating production losses stemming from equipment failure. The miner has said its semi-autogenous grinding equipment had engine trouble for 10 days in October, four days in December and four days during the first week of January. It also has said there was a chance it could suffer other stoppages. BHP Billiton (BLT.L: Quote, Profile, Research) (BHP.AX: Quote, Profile, Research) and Xstrata (XTA.L: Quote, Profile, Research) each hold 33.75 percent stakes in the mine.
Jan. 2 - Floods have cut off a key mine which supplies coal to Zambia's Konkola Copper Mines. KCM would not immediately say whether the mine would face production delays due to a shortage of coal.
(Compiled by Karen Norton, editing by Pratima Desai) |
