By Leia Michele Toovey- Exclusive to Copper Investing News

Copper rallied to a one week high on Monday as uncertainty over the U.S. banking bailout dropped the American currency in comparison to the yen and euro.

Further positive sentiment was extended as stocks fell in Asian warehouses, suggesting a pick-up of demand in China. Extra impetus to copper came as oil rose above US$106 a barrel on Monday.

The dollar sunk as skepticism grew over whether the U.S. government’s mortgage debt bailout plan would be the cure-all to the credit crunch. Markets around the world got a boost late last week after news of what is likely the biggest bailout in U.S. history, capping the tumultuous week in which Lehman Brothers filed for bankruptcy protection and the “thundering herd” Merrill Lynch was purchased by Bank of America. Prices also found support as China’s implied copper demand rose 1.2 per cent in August from July. Inventories of the red metal fell 3,100 tonnes to 206,700 tonnes on Monday.

Copper for delivery in three months MCU3 on the London Metal Exchange was up US$140 at US$7,180 a tonne by 0925 GMT from Friday’s close of US$7,060, after hitting a nine-month low of US$6,625 earlier that week. Indian copper futures traded at a one-week high on Monday. At 4.30 p.m. (IST), the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was up 1.29 per cent at 322 rupees per kg.

The U.S. and Chinese markets largely control the global prices of copper. China consumes about 25 per cent of global copper production, while the United States is estimated to consume some 15 per cent. A pick up in Chinese industrial activity could extend some well needed support to copper prices, and while Chinese demand may strengthen as activity resumes after the Olympics, the outlook for the U.S. construction activity has weakened substantially.

Company news

Base metal miner Kagara Ltd has acquired the Maitland copper deposit near its Balcooma operations in Queensland for US$6.5 million. Kagara said the deposit, with an established indicated and inferred resource, could support a significant underground operation that could supplement production from the Balcooma copper mine. Maitland is 50 km from Balcooma and within trucking distance of either the Thalanga or Mt Garnet copper treatment plants. The company acquired the deposit from Glengarry Resources Ltd.

Inmet Mining Corporation (TSX: IMN) and Petaquilla Copper Ltd. (TSX: PTC) announced at the end of Friday, that Inmet’s offer to acquire all the outstanding common shares of Petaquilla Copper has been accepted. Inmet has also announced that the conditions to the offer have all been satisfied or waived. Inmet has taken up and accepted for payment all Petaquilla Copper common shares deposited to the Offer. Such payment will be made on or before September 24, 2008.

163,116,924 common shares of Petaquilla Copper, representing 94.9 per cent of the issued and outstanding common shares (82.2 per cent on a fully diluted basis), have been taken up under the Offer. Upon payment for the 163,116,924 common shares taken up, Inmet will own 95.4 per cent of the issued and outstanding common shares of Petaquilla Copper. Inmet first announced its intention to make the Offer on July 6, 2008 and it mailed its take-over bid circular to Petaquilla Copper shareholders on July 28, 2008. The accepted offer was to purchase for cash all of the outstanding common shares of Petaquilla Copper, at the price of US$2.20 per share.

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