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Copper prices to remain high, predicts expert

Copper prices to remain high, predicts expert
By Kabanda Chulu
Friday April 04, 2008 [04:00]

LONDON Metal Exchange (LME) analyst David Thurtell has projected that copper prices will remain high despite concerns about global economic growth. And First Quantum Minerals, the holding company of Kansanshi and Bwana Mkubwa mines, has predicted a 37 per cent growth in copper output for 2008.

According to the Mining Daily, Thurtell stated that copper prices during the first quarter of 2008 on the London Metal Exchange, which is often seen as a key gauge of real economic activity, was quoted between US $8,806 and US $8,660 per metric tonne as compared to the closing price of the previous quarter that stood at US $8,430 per metric tonne.

“As long as the credit market turmoil persists, commodities could expect to benefit from fund buying and it is expected that tight supply from the mines may support prices but the burning question is how well or badly the mining industry will perform this year especially that fresh specific disruptions have already occurred and there will almost inevitably be more,” stated Thurtell. “But as at now, London copper future prices are heading for their strongest quarterly gain in almost two years, with prices expected to remain high despite concerns about global economic growth.”

And First Quantum minerals chairman Philip Pascall stated that the 37 per cent projection increase was based on the commissioning of First Quantum's newest operation, the Frontier Mine, in Zambia.

"This project, which had a measured and indicated resource of 182 million tonnes of copper at a grade of 1.16 per cent began commercial production during the fourth quarter of 2007 and it is estimated that 84,000 tonnes of copper will be produced this year," Pascall stated.

First Quantum Minerals has six operational mines, including the Kansanshi open pit copper and gold mine, the Nkana underground copper mine and cobalt refinery, the Mufulira underground copper mine, smelter and copper refinery in Zambia, the Lonshi open pit copper mine in the DR Congo and the Guelb Moghrein copper gold mine in Mauritania.

Labels: COPPER

posted by MrK @ 10:02 AM