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

^[2]U.S. copper futures plunged more than 6 per cent early Friday after government data showed a larger than expected fourth quarter GDP collapse.  The bad news capped a week where optimism pushed copper futures up.  In fact, copper increased, and safe haven gold ^[3] pared losses.

On Thursday, LME ^[4] copper rose for a fourth day in a row; the red metal jumped $85, or 2.5 per cent, to $3,495 a tonne. Copper has added 11 per cent in February, heading for the biggest monthly advance in a year. MCX copper futures were also up. Copper February contract gained 1.64 per cent at Rs 170.65 per kg It opened at Rs 168.95 as against its earlier close of Rs 167.90 per kg.  Likewise, copper April contract also traded up by 1.67 per cent at Rs 173.65 per kg as compared to its previous close of Rs 170.80 per kg.

Speculations that purchases made by China ^[5], the metal's biggest buyer, will erode global supplies sent the metal on a positive rally.  Copper inventories monitored by the LME fell to 545,475 tonnes. The amount of copper scheduled to be taken out of warehouses, known as canceled warrants, jumped to the highest in a year. Prices of the metal have already climbed 14 per cent this year on speculation government spending programs will spur demand.

Before week GDP ^[6] numbers were announced in America, the metal's second largest consumer, cautiously positive comments from Federal Reserve Chairman Ben Bernake revived hopes for stronger demand for industrial metals. Copper prices are expected to recover to an average of $4 200/t in 2009, says Standard Bank head of commodities research Walter de Wet. Although he did not see any short-term upside for commodities, De Wet predicts that the commodities market, and especially the copper market, will begin to see an improvement by the second half of the year. 

While government spending in China and the US is expected to keep copper demand remain robust in 2009, demand in the Europe and Japan will continue to decline. Japan ^[7], the world's second largest economy, has been dealt an especially hard blow in the global recession. Japan's copper wire and cable shipments plunged 21.2 per cent in January from a year earlier, the biggest monthly drop in more than three decades.  Shipments dropped to 53,100 metric tons from 67,385 tons a year earlier. The drop, according to preliminary data, was the biggest since February 1975, when shipments fell 31 per cent. Japan's economy is set to contract at the fastest pace ever in fiscal 2009.  

Company News

Frontera Copper Corp. (TSX: FCC) has appointed a new board of directors consequent upon the successful take-over bid of Frontera by Invecture Group SA de CV. The new board replaces all previous directors and now comprises four directors all of whom are experienced mining professionals and residents of Canada. Bryan Nethery, P.Eng. interim CEO, holds a degree in metallurgical engineering and has over 30 years of domestic and international senior management and metallurgical engineering experience.  Steve Vanry, CFA is a Chartered Financial Analyst and serves as the President of TSX listed Golden Predator Mines. Vanry has 18 years experience managing and financing natural resource companies. Steve will serve as corporate secretary of Frontera. Rene G. Carrier is a former executive of a regional Canadian securities dealer and for the last 17 years has been active in the financing and management of public resource companies. Gordon J. Fretwell, LL.B.,  was formerly a partner in a large Vancouver law firm but since 1991, been a self employed mining lawyer and mining executive. Frontera will continue to operate out of its Phoenix Arizona office for the immediate future however, Frontera's registered office will be changing to Vancouver, Canada in the immediate future.

Chilean state copper giant Codelco says profits for 2008 dropped 41 per cent from a year earlier due mainly to lower production and prices. Codelco president Jose Pablo Arellano says profits in 2008 totaled $4.9 billion, after production for the year dropped 7.4 per cent to 1.5 million tons. Recent international copper prices have averaged $1.50 a pound after reaching nearly $4 last year. High prices in 2008 allowed Chile to accumulate $20 billion, $4 billion of which is being invested in a stimulus package to address the global economic crisis.