By Leia Michele Toovey- Exclusive to Copper Investing News ^[1]

^[2]Copper prices may slump by more than half this year as the global recession cuts demand.  

MF Global Ltd., one of 12 companies that trade on the floor of the London Metal Exchange, predicts that the three-month contract may average $3,250 per metric tonne in 2009. Copper futures in London averaged $6,886 a tonne last year, and traded today at $3,330.

Under renewed pressure from the biggest one day increase in LME ^[3] stocks since 2003, U.S. copper futures fell as much as 5 per cent Thursday morning. LME stockpiles jumped 22,750 tonnes to 477,675 tonnes. COMEX copper stocks increased 306 to 40,240 short tonnes as of Wednesday.

Copper, used primarily in home construction has taken a recent tumble in reaction to data showing the largest monthly decline in December U.S. new home sales since 1994. Sales of newly built U.S. single-family homes fell 14.7 per cent in December to a 331,000 annual pace. Weak economic figures coming out of the United States reflect a growing recession. Market attention will now turn to Friday's fourth-quarter gross domestic product results. U.S. GDP is expected to contract at an annual rate of 5.4 per cent in the fourth quarter.  On a positive note, U.S. President Barack Obama's $825 billion stimulus plan cleared its first Congressional hurdle as the Fed eyed more extreme measures to ease credit market strains.

Copper is an indicator for the world economy and sets the pace for other industrial metals. The International Monetary Fund forecast yesterday that the global economy will almost halt this year as bank losses from toxic assets reach $2.2 trillion.

Company news

Quadra Mining Ltd. (TSX:QUA) said Thursday it has changed its operating plan at the Robinson mine, and raised planned copper production this year by seven per cent. "The company has continued to evaluate alternate mine plans for Robinson that will allow for continuity of operations through the current global economic downturn and beyond," Quadra said in a statement. The company said it will change mine operations at Robinson, moving from the existing Veteran pit to the smaller satellite Kimbley Wedge pit in 2010, and then to the Ruth pit. The Veteran extension will now be deferred until the Ruth pit has been completed. "This new schedule is not only expected to keep us operating at current copper prices, but will also increase our annual copper production for this and the next two years," stated Quadra President and Chief Executive Officer Paul Blythe. Blythe added that he is confident Quadra will be able to continue to operate at both Robinson and the Carlota copper mine in Arizona "in the current market conditions."

Tara Minerals Corp. recently made the announcement that it has entered into an agreement to acquire 100 per cent interest in eight concessions known as the Centenario property in Sinaloa State, Mexico. The concessions total 5,400 hectares and are being purchased for option payments totaling $2,000,000 due between now and November 2012. The Centenario prospect is in close proximity to Tara Minerals' existing Don Ramon and Lourdes mineral claims. A preliminary rock-chip sampling program has indicated the potential for five separate mineral systems at Centenario. Two gold/copper systems returned initial chip sample assay results of up to 17 grams/t gold ^[4], 7 per cent copper and 350/t grams silver ^[5]. Two lead/zinc/silver systems returned values up to 8 per cent lead ^[6], 9 per cent zinc ^[7] and 400 grams/t silver. There are also indications of an iron ore system which returned values of up to 67 per cent iron ore, 6 grams/t gold and 4 per cent copper. A systematic mapping and sampling program is planned.

Grupo Mexico SAB, the largest mining company in Mexico, may reduce the value of its booked copper sales in the fourth quarter by as much as $400 million, driving down profit after prices plunged. Grupo Mexico records sales under a method known as provisional pricing, where sales on copper concentrate are booked at the time of shipment and then altered to reflect the market price when payment is received from refiners. The pricing adjustment could cause Grupo Mexico's net income to fall 62 percent to $80 million in the quarter.

Volta Resources Inc. (TSX:VTR) reports that Freeport-McMoRan Exploration Corporation has provided notice that they have elected not to proceed with exploration expenditures and payments related to an earn-in agreement on Volta's Gaoua copper-gold porphyry project in southern Burkina Faso. Freeport has not earned an interest in the project and does not retain any rights to the Gaoua project.