Well it happened... FCX declares Force Majeure.. Copper rallies. ...your such a scoundrel Frank looking at your post yesterday, ignoring large chinese and Indian smelters going down like article further below, let alone Bingham Canyon world #6 mine already shut down amongst others since late April due to 165 N ton slide of course it only supplied 17% of the US domestic Market amongst other mines down and projects cancelled.
FCX's Grasberg is 3% of global cu supply alone. I post all valid 3rd party articles I can find vs. your selective always negative/bearish posts "Fear Monger Franky"
Copper soars after Freeport McMoRan declares force majeure on Grasberg mine
Copper futures rallied Wednesday after Freeport McMoRan Copper & Gold Inc. (NYSE:FCX) declared force majeure at its Indonesia's Grasberg mine, the world's second largest copper operation, heightening concerns about low supplies this year.
The company had to halt operations last month, after a tunnel collapsed at the mine and killed 28 workers. Now it is waiting for approval from Indonesian authorities to restart operations in phases, starting with open-pit mining and processing activity.
Freeport's Indonesian subsidiary restarted some operations after around two weeks, but the government ordered a halt in all production days later when a worker was killed in a new accident.
The stoppage is reducing output by about 3 million pounds of copper (1,361 metric tons) and 3,000 ounces of gold a day, the company said today.
For the period between May 15 and Tuesday, the company said the estimated impact on PT Freeport Indonesia's production was about 80 million pounds of copper and 80,000 ounces of gold.
Metal for delivery in three months went up 1.1% to $7,144.75 a metric ton this morning on the London Metal Exchange. Copper rose as much as 1.4%, the main intraday gain since June 4, after hitting a low of $7,032 Tuesday. Futures for delivery in July increased 0.9% to $3.223 a pound on the Comex in New York.
Force majeure at large Chinese copper producer, supply cut by half
Cecilia Jamasmie | June 6, 2013
China’s third largest copper producer, Jinchuan Group, declared Thursday force majeure at one of its smelters, which is predicted to reduce its supply by half in the coming months.
The stoppage comes only a few weeks after outages at two large copper mines, Freeport-McMoRan Copper & Gold’s (NYSE: FCX) Grasberg in Indonesia and Rio Tinto’s (ASX, LON: RIO) Bingham Canyon in the US.
If the incident at Jinchuan Group's Gansu province plant results in lower output, analysts believe China will have to increase its copper imports. The Asian giant may also shore up international copper prices on the London Metal Exchange and push up physical premiums, the charges buyers pay suppliers to secure metal.
The force majeure may also help avoid a global copper surplus that experts had been expecting in 2013 due to new mine supply and softening demand in some regions.
Copper fell today in London from a two-week high, with benchmark copper was down 1.3% at $7,356 a tonne by 1006 GMT.
Yesterday the red metal touched $7,500 a tonne before closing flat but prices are still down about 7% so far this year.