Copper prices soar to a new high on talks of a force majeure at BHP Billiton’s Escondida mine
After substantial gains yesterday, London Metal Exchange copper prices have today jumped to their highest level since June 2015.
Benchmark copper has risen 4.5 per cent to a session high of $6,083 a tonne.
The surge came as news emerged that BHP Billiton is declaring a force majeure on shipments from its Escondida mine in Chile, which is the world's biggest copper mine.
Indonesia issues a new permit
Elsewhere in the copper mining world, US miner Freeport McMoRan has been issued a new permit from the Indonesian government for its Grasberg mine where exports have been suspended for a month.
Freeport said the stoppage of copper concentrate exports from the world's second-largest mine reduced output from by around 70m pounds of copper per month.
Rio Tinto, which is in a joint venture with Freeport, yesterday said it was mulling exiting the mine after Freeport warned it could be forced to cut production and reduce its workforce if it didn't get a new permit by mid-February.
It is not yet clear whether Freeport has agreed to adopt the new permit.