Chile copper output rises 7.8%

Production and Markets

Publishing Date: 01 Oct 2009 1:05pm GMT
Author: Mining Journal

Copper output in Chile, the world's biggest producer, rose 7.8% in August from a year earlier after state-owned Codelco and BHP Billiton boosted production, the government said.

Output increased to 459,823t from 426,689t a year earlier, the country's national statistics agency said in a statement distributed in Santiago today.

Copper prices have doubled this year as demand for the metal used to make wires and pipes rose in China, the biggest importer of the commodity. The metal advanced the most in more than a month in New York after manufacturing reports for China and Japan signaled increased demand.

Futures for December delivery climbed 3.3% to US$2.819/lb on the New York Mercantile Exchange's Comex division, its steepest gain since August 21.

Codelco, based in Santiago, is the world's biggest copper producer. Melbourne-based BHPB, the largest mining company, owns 57.5% of Chile's Escondida, the world’s biggest copper mine.

Production of molybdenum, used for stainless steel making, rose 27% to 3,164t from 2,495t a year earlier, the agency said.

(Bloomberg, Oct 1)