By Leia Michele Toovey- Exclusive to Copper Investing News

^[1]U.S. copper futures ended positive on Wednesday as bargain hunters took advantage of lower prices following declines in the red metal triggered by a strengthening U.S. currency.

The dollar surged to its highest level against the euro since January amid growing expectations that the American economy would outperform its European counterpart. Copper for December delivery HGZ8 closed up by 3.90 cents at US$3.3120 a lb on the New York Mercantile Exchange's COMEX division; the session range spanned US$3.2520 to US$3.3315. COMEX estimated final futures volume was at 10,979 lots, compared with the 19,097 lots recorded on Tuesday.

The metal continues to be plagued by an uncertain near-term global demand outlook, highlighted by steady increases in London Metal Exchange copper warehouse stocks. Copper was not alone. All the industrial metals ^[2] got hammered this week as the dollar strengthened and oil fell sharply after the threat from Hurricane Gustav passed. With an absence of data when it comes to consumer demand, copper prices are pretty much in the hands of the dollar and oil.

Global mining giant Rio Tinto Ltd ^[3] (RIO.AX), which has been seeking to expand its copper reserves for some time, announced on Tuesday the signing of further exploration agreements with Chile's Codelco, ^[4] the world's largest copper producer. The agreements, which are a continuation of agreements embarked upon in January, are for joint exploration of the Esteli and Paloma prospects in northern Chile. This region provides about a third of the world's copper output. The standalone exploration investments are valued at US$20 million each and give Rio Tinto an option to earn a 55 per cent interest in each prospect. The agreements strengthen the relationship between two copper giants that are struggling to raise output as ore grades fall at their biggest mines. The Esteli property adjoins the Exploradora property, the first joint-venture agreement between the two companies, while the Paloma property is located near some of Chile's richest copper mines, including Spence, owned by BHP Billiton (BHP.AX) and El Tesoro, owned by Antofagasta (ANTO.L) .Rio Tinto said it was drilling at Exploradora and would drill later this year at Paloma.

A judge has ruled that a unit of Grupo Mexico SAB, Mexico's biggest mining company, intentionally harmed creditors of Asarco LLC by stripping the company's stake in Southern Copper Corp. Americas Mining Corp. is liable for the "actual fraudulent transfer" of a 54 per cent stake in Southern Copper away from Asarco, a separate Grupo Mexico unit that is in bankruptcy, U.S. District Judge Andrew S. Hanen said August 30. Asarco's court-appointed directors sued Phoenix-based Americas Mining last year, seeking US$8.18 billion in actual damages, almost five times Grupo Mexico's 2007 net income. Hanen asked both sides to submit by September 15their views on how much money Americas Mining should pay in damages. The latter said in a statement that it would appeal the decision. Because of the mixed nature of the 190-page ruling, it will not be obvious which side came out on top until the judge rules on damages In this case, the judge ruled that Asarco lost as much as US$123.2 million because of the forced transfer. Asarco is asking for US$1.85 billion in lost dividends related to the Southern Copper shares, plus the value of the shares. Based on the last closing price the disputed shares would be worth US$6.64 billion. Analysts and stock traders who sell Grupo Mexico in Mexico City said this morning that the ruling confused investors because the company claimed the court decision was a victory, not a defeat.

Grupo Mexico told investors that the part of the ruling that Americas Mining Company lost related to the use of the money paid for the Southern Copper shares. Grupo Mexico paid about US$765 million for the Southern Copper shares, allowing Asarco to redeem some bonds and providing it with no cash, according to court records. The company's shares fell almost five percent to 15.98 pesos (US$1.54) in Mexico City stock exchange trading, the most since August 11. Shares of Southern Copper Corp., the company at the heart of the dispute between Grupo Mexico and Asarco, fell 3.3 percent to US$24.69 in New York Stock Exchange trading Wednesday.