Copper prices soared in New York after the 8.8-magnitude earthquake in Chile forced Codelco and Anglo American to suspend some of their mine operations.
Futures contracts for May delivery in New York rose by 6.2 per cent – the biggest gain for almost a year while levels in London climbed to their highest in more than five weeks as the ‘quake affected almost 5% of the world’s copper production. Around a third of the world’s copper production is mined in Chile.
Codelco’s plants at El Teniente and Andina both suffered a power outage after Saturday’s earthquake, however Codelco announced yesterday that its El Teniente mine had “gradually” resumed production from about 4pm local time yesterday afternoon (1900 hours GMT/2pm EDT). Andina, however, remains closed. Power has also been partially restored to Anglo American’s mines at Los Bronces and El Soldado, though there is no word as to when production will re-commence.
Meanwhile reports from Chilean media quote Raul Maturana, secretary general of the National Federation of Port Workers of Chile as saying that the central Chilean ports of San Antonio and Valparaiso remain closed however the larger ports of Antofagasta and Mejillones are apparently unaffected, meaning copper shipments should be able to leave the country.
Codelco is the world’s largest copper producer and has said that it will be able meet supply contracts, compensating for any shortfalls with shipments from undamaged plants in the north of the country. The company ruled out declaring force majeure, which allows companies to miss obligations because of circumstances beyond their control.
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