2011 has seen workers' strikes at mines operated by Freeport McMoRan, Xstrata, BHP Billiton, and Anglo American. However, despite resolution, if mining companies neglect political risk and labor relations, mining strikes are here to stay.
Copper futures were volatile on Tuesday, but closed higher for the second-straight day as better-than-expected US consumer confidence data and a relative calm tone in the European markets overshadowed a disappointing home sales data.
A strike at Freeport McMoRan's Grasberg project in Indonesia has impacted the company's copper output and aided in tightening the copper supply chain as a whole, positioning copper for a price rally.
To obtain pure copper, mined rock must go through several processing stages before it is considered market ready.
As a metal that does not easily degrade or lose its chemical and physical properties, copper is amenable to recycling. Because of this, recycled copper is sometimes considered when calculating world coppers reserves. But can the scrap copper market help support the growing demand for the red metal?
In an interview with Copper Investing News, when asked if peak copper is a current reality, Yu-Dee Chang, Chief Trader at ACE Investment Strategies, commented “Although the day will ultimately get here, the answer for now is probably- not yet."
Dorato Resources Inc. (CVE:DRI,OTC:DRIFF,FRA:DO5) reports on drill core assay results from the Cobrecon copper-gold porphyry mine.
The 2011 price of copper has been severly influcenced by several factors, such as unfavourable economic data from the US, concerns over China's monetary tightening, and the financial stability of the Eurozone.
Copper prices started the week with some upward momentum, supported by supply threats in top producer Chile.
Copper prices have been gaining over the last week as the red metal touched a three-week high last Friday, ignoring weak economic data out of the United States as a rally in equities and a weak greenback provided enough momentum to boost prices.
Wednesday, December 21, 2011