20100106
africagoodnews

Analysts have predicted a strong demand for copper this year, principally because many economies of industrialised countries are recovering from the recent recession. Expectations of higher demand for the metal will add to the rally in prices seen in 2009.

As from December 30, 2009, copper on the London Metal Exchange, (LME), traded above US$7,300 a tonne, its highest level since September, 2008. Copper is now on course for an annual rise of about 140%, it's largest in more than 30 years.

There are also fears that a strike by miners at two copper mines owned by Coldeco in Chile could affect supply. The workers are demanding higher wages, arguing that this is because global prices of copper have gone up. However, analysts believe that even if the strike action went ahead, it would not be prolonged.

One of the mines, Chuquicamata, produces about 4% of the world's copper and is expected to produce 565,000 tonnes this year.

Zambia, Africa's largest copper producer has also projected increased production from its mines after it managed to re-open some mines that had halted production as a result of the economic downturn.