SANTIAGO, Sept 16 (Reuters) – Codelco and Antofagasta PLC suspended operations at two major copper mines in Chile, the world’s top producer of the metal, after a powerful earthquake struck off the coast on Wednesday, threatening over 600,000 tonnes of annual capacity.
Copper prices on the London Metal Exchange rose to two-month highs in early Asian trading as worries about supply disruptions offset lingering concerns over demand from China, the world’s No. 1 consumer, amid copper’s longest rout in years.
State copper miner Codelco halted open-pit operations at its large Andina mine and evacuated workers at its smaller Las Ventanas refining and smelting division, as well as at the two northern ports of Mejillones and Barquito, as a precautionary measure. Andina produced 232,000 tonnes of copper last year.
Antofagasta said it had temporarily closed its flagship Los Pelambres mine, which produced over 400,000 tonnes of copper in 2014, and would wait until daybreak to assess the damage. There were no initial reports of damage to personnel or equipment.
Other producers in the region Anglo American PLC and BHP Billiton, said they were unscathed after the magnitude 8.3 earthquake hit off the coast, shaking buildings in the capital city of Santiago and generating a tsunami warning for Chile and Peru.
The quake is the latest natural catastrophe to roil mining in the resource-rich South American nation, which accounts for a third of global copper output.
Heavy rains caused flooding and shut many mines in the north of the country in April.
Analysts previously estimated that between about 1 million and 1.5 million tonnes of annualized global mine supply has been lost due to flooding, droughts, power shortages and low ore grades from Chile to Zambia this year. That is about 5 percent of global annual consumption.
“Anything that has potential to restrict supply will have more of an effect on the price when things pick up,” said Jonathan Barratt, chief investment officer at Sydney’s Ayers Alliance.
(Reporting by Fabian Cambero and Anthony Esposito in Santiago, Chile and Melanie Burton in Sydney; Writing by Josephine Mason in New York; Editing by Richard Lough and Ken Wills)
Source: Reuters
Okay, Now if kwacha picks up, chisimba kambwili and all PF caders should not shout loud to praise there PF administration it will be global effect
@betters
They should now thank nature for misfortune to Chile since copper prices have risen! Knowing them, they just boast of good economic management.
Mopani also has no cause to retrench workers.
AND SO IS THE FALLING KWACHA, IT IS A GLOBAL EFFECT. THE GRZ HAVE ALREADY SAID IT, U JUST STIFF-NECKED.
Copper prices will hit US$7000 per tonne by end of this year
Fortune out of somebody else’s misfortune…lets see what the zambian mining companies do now
THATS AN OPPORTUNITY FOR ZAMBIA UNLESS THE *****S IN POWER DONT UNDERSTAND THE SWOT ANALYSIS
For sure Kambwili will be on the news telling Zambians that this is due to the PF and Lungus fantastic leadership!
But hold on a minute Chisimba. If Lungu can cause earthquakes in Chile, how come he cannot even make it rain here in Zambia??
Maybe he does not know we need water in Kariba???
Opposition leaders in Zambia celebrates when catastrophic event hits other people because they see an opportunity to gain popularity. Unfortunately the bad wishes they had for pf govt may turn to be a blessing in disguise following the calamities in our copper competitors. We just hope that oppositions should pray hard for mine closures in Chile to prolong .
All things work for the good for those that love that LORD. Jesus let’s pray for our brothers and sisters from Chile; then celebrate the fact that our miners will be back at work tomorrow.
Viva and praises to the most high Jehovah.
‘..State copper miner Codelco ..’. Chile has been running its mines for a while now. It is time we (re-)learned the ropes. The only ‘killer’ is interference from the politicians as usual, but we need to bite the (copper) bullet and nationalise. That is the only way we can get real value for ‘our mines’ – not just from ‘taxes’ and ‘job creation’. Natukula bane..
Wait a minutes, prices have since slumped after news went round that mines have not been affected, i.e from $5405 to $5341. That’s the latest news. But how come markets are not reacting to news of mine shutdown (Baluba, scale down at Mopani) in Zambia? One would expect copper prices to have hit $8000 this time. When ZESCO begins to operate at full capacity (assuming we have massive rains plus Maamba and Itezhi Itezhi going live) next year, mining firms will also be producing at full capacity. Kalumbila mine will be fully fledged. My bush economics tells me that supply will be higher, I doubt demand will surge. Doubt copper prices will go beyond $8000
May the earthquakes and tsunamis long continue! Someone’s prayers are being answered.
My goodness good news indeed. Please wake up and do the right thing timely. Bring back the workers start mining seriously tomorrow. I order you HH.
Now I believe what that economist said that if another company withdraws supply at London metal exchange then it will boost and hence Mopani through has a bad effect but also caused the rise in copper price!!
This is good for Zambia and Congo DR, because copper came to about $4400. If the London Metal exchange records up ward the the Shanghai market will be our savior. Companies like Glencore should learn to coexist though this is business.
UPND, when Hon.Kambwili and His Exvellency ECL said copper prices ve affected our kwacha, u heavily rubbished them and sounded your vuvuzelas saying HH is the solution.Additionally,u tied the ailling kwacha to poor administration of PF,what re u saying now? Hipocrisy or double standards will never win u votes. Bu chimbwi ba UPND!!
UPND cadres, Kambwili will not claim anything that is only in your imagination. Why can’t you guys think clearly kanshi?
Just wait and see! Bigmouth Kambwili cannot resist saying something stup!d for longer than 48 hours!
Everyone in PF is refusing that current problems are Global, Okay agreed.. Now Agree also that Zambia is a country that in default settings, we don’t need a president to customise the country … Malabish