Copper cost soars on Chile prolongation fears

Leo Lewis and David Robertson & , : {}

Copper prices surged currently as traders distributed the stroke on supply caused by the trembler in Chile, the worlds greatest writer of the metal.

Copper prices on the London Metal Exchange rose $160 to $7,355 a tonne, the top turn given mid-January. At one point during the day, copper prices rose by 6.2 per cent in New York among fears that steel reserve could be disrupted following the extinction caused by the 8.8 bulk trembler that strike Chile on Saturday.

About one fifth of copper cave genius in Chile that constructed some-more than five million tonnes of copper last year was primarily close down by the trembler but majority mines have restarted operations.

Detailed report about the expect state of Chilean infrastructure has been lacking, dealers said, adding to concerns that the nation might experience serious disruptions to the greatest trade product. Even if mines have survived but collapse, analysts in Hong Kong said, there might be issues with the resumption of shipping from Chilean ports strike by yesterdays tsunami.

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Copper is elemental to the Chilean economy, representing about half of the countrys $53 billion annual exports. The towering gait of Chinese construction a whole increased by Beijings $586 billion impulse package, meant that Chile met about 50 per cent of Chinas jot down import direct of 3.19 million tons of polished copper last year.

Meanwhile, Rio Tinto pronounced currently that it had paid for an one more fifteen million shares value C$244.7 million (�156.7 million) in Ivanhoe Mines, that is construction a copper cave at Oyu Tolgoi in Mongolia. The merger increases Rios interest in Ivanhoe by 2.7 per cent to 22.4 per cent.

Production at the cave is approaching to begin from 2013 and Rio has rights to enlarge the holding in Ivanhoe to 44 per cent by swapping a $350 million loan for shares.

Andrew Harding, arch senior manager of Rios copper division, said: Our serve investment in Ivanhoe Mines underlines the certainty in the peculiarity of the world-class Oyu Tolgoi deposition and the priority in the plan portfolio.