Bloomberg reported that Chilean copper mines owned by Chile's Codelco have faced protests regarding job security. The Collahuasi mine, owned by Anglo American plc (LSE:AAL) and Xstrata plc (LSE:XTA) and also located in Chile, has been unaffected.
Southern Hemisphere Mining Ltd. (ASX:SUH,TSXV:SH) announced that recent drill results from its Llahuin copper project in Central Chile indicate the potential for a high-grade area in the Central Porphyry zone.
All Grade Mining Inc. (OTCQB:HYII) announced that will be acquiring the Jose Del Transito copper project in Chile. The company plans to take control of the mine in the next few weeks.
Chile is facing increasing difficulties in keeping up with ever-growing energy demand from major copper producers. Some mining groups may be pushed to secure their own energy needs as Chile remains one of the most lucrative site for copper producers.
Copper prices were weighed down amid of the expectation of another recession in Europe despite the latest Greek bailout package. China's sluggish manufacturing sector too is putting downward pressure on red metal.
Copper gains on expectations that the Federal Reserve will keep rates low until 2014 in order to keep the US economy's path to recovery on even keel.
The still-sluggish economy will challenge copper producers in 2012, but they continue to race to raise output as demand is seen to outstrip supply.
Platts reported that SONAMI sees Chile's 2012 copper production at 5.5 million tons.
Bloomberg reported that production at Codelco's mines in Chile is up through September 2011.
The Eurozone's woes continue to keep copper prices down, but optimism prevails as many analysts see global demand rising over the next year.
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