Saturday, June 26, 2010

Copper price rising after Chile quake

SANTIAGO–Major copper mines slowly resumed operations on Sunday after central Chile suffered an earthquake that limited power supplies, which analysts fear could curtail exports by the No. 1 producer.

Ricardo Alvarez, manager at Chile's fourth-largest mine, El Teniente, said the recovery pace of output would depend on the electricity supply, which was partial.

Alvarez said the mine could slow extraction if power lags.

Copper prices surged in early trading Monday on supply worries caused by the 8.8 quake in Chile, jumping 5.6 per cent on the London Metal Exchange.

The tremor killed hundreds, with death tolls climbing, most of them south of the northern mine zone that forced Codelco to shut El Teniente and its Andina copper mine.

Production resumed at Anglo-American Los Bronces copper mine, union leader Eduardo Rocco said.

An Anglo American spokesman said there were no initial reports of major damage at the two mines, which together produce some 280,000 tonnes a year.

Chile's biggest mines produce a third of the world's copper.

Analysts feared supply disruptions from mid-sized deposits nearer Santiago would stoke prices.

Anglo American and Codelco halted output at four mines in total.

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