Copper rises to 10-week high after supply threats to key mines

Copper touched its highest in more than 10 weeks after one major mine was ordered to close and another was hit by industrial action, threatening supplies. Panama’s government said it will shut a giant copper mine owned by First Quantum Minerals, damping hopes that the company might be able to reach a new deal to keep it operating. The project, the subject of mass protests from environmentalists and labour unions, produces about 1.5 per cent of the world’s supply. Meanwhile, workers at MMG’s copper mine in Peru began an indefinite strike on Tuesday, threatening disruptions to production. Concerns have been growing over copper’s constrained long-term output outlook combined with demand that’s forecast to surge due to the metal’s crucial role in the worldwide transition to cleaner energy. Those fears have been exacerbated by environmental protests that could lead to companies deciding not to proceed with some projects. Copper is the only industrial metal among the major six on the London Metal Exchange that has risen this year. It increased as much as 0.3 per cent to $US8,500 a ton on the LME, the highest since September 15, before trading at $US8,492.50 a tonne as of 9:36 am in Shanghai. Bloomberg