Copper up BHP Billiton down

Copper prices broke through the $8,000 mark yesterday, rising to $8,105 a tonne – a rise of 2.7 percent on the day after workers started there long predicted strike at the Escondida mine in Chile, majority owned by BHP Billiton.

The Escondida mine produces about 3,500 tonnes of Copper per day, about 20 percent of Chiles copper output and contributes about 2.5 percent of Chiles GDP. In global terms the mine represents about 8 percent of total global copper production.

BHP Billiton has not hired replacement staff at the site, so production estimates are that the strike will see a 60 percent drop in output in the near term – of course if the strike is allowed to progress it is likely that production will face further disruption with time. BHP Billiton owns a majority 57.5 percent stake in the mine, with Rio Tinto owning 30 percent.

Shares in BHP Billiton were down 1.31 percent (13 pence) to 976 pence on the London Stock Market.