Despite a deteriorating global economic picture, as of Thursday, copper is on track to post its highest gains since March, as an appreciation in China’s currency overshadowed the financial concerns permeating the Eurozone, and America.
With copper supplies already in a deficit, and the near-term supplies are dwindling due to a reliance on aging mines, and rising copper prices, there is extra incentive to search for new copper reserves.
Bloomberg reports that BHP Billiton Ltd. (NYSE:BHP), Minmetals Resources Ltd. (HKG:1208) and First Quantum Minerals Ltd. (TSE:FM) are increasing copper exploration in Zambia.
Copper futures rebounded Tuesday, as better-than-expected Chinese industrial production and US retail sales data boosted the red metal’s demand prospects.
Equinox Mineral’s recent bid for Lundin Mining Corporation has sparked rumors of a bidding war for the base metals miner, and may even set the stage for a blitz in merger and acquisition activity across the sector.
Zambia is most famous for its reserves of copper and cobalt, however, the country is also a miner producer of selenium and sliver. Gold, platinum, and palladium are also produced as a by-product of copper mining. Surging copper prices from 2004 to the present day has rapidly rekindled international interest in Zambia's copper sector.
Copper futures declined Tuesday morning, back-tracking from Monday’s gains as traders were skeptical over the state of the economic recovery. On the COMEX, March copper tumbled 2.3 percent, to $4.25 a pound. Copper ended up for a second consecutive day on Monday, as market sentiment focused on dwindling copper stockpiles.
First Quantum Minerals Ltd. (TSE:FM) updates on its expansion and development objectives for its operating mines and growth projects.
Copper ascended on Monday in unison with the rise in U.S. stocks, which advanced to their highest level in five weeks as upbeat Chinese factory data spread optimism across the markets.
Copper commenced Tuesday in positive territory, extending Monday’s winning streak on the back of the longest run of inventory declines in over a year. Copper is ignoring overall market sentiment as lower than anticipated earnings reports from both Goldman Sachs and IBM wreaked havoc on the American and European stock markets.
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