The Australian reports that copper prices could rise to boomtime highs of more than US$4 a pound because of unexpectedly low supply as global growth continues to grow, says Rio Tinto’s operating partner in the big and controversial Grasberg copper and gold mine in Indonesia, Freeport-McMoRan.
And in good news for Rio, whose interest in Grasberg has been looking less valuable in recent times, Freeport says progress has been made in a stand-off with the Indonesian government that has slashed output this year.
Speaking to investors after the release of Freeport’s second-quarter earnings this week, Freeport chief Richard Adkerson said global copper supplies were only going to get tighter as growth spurred more demand for the industrial metal, which is often seen as a barometer for economic growth.
“You’re going to see a period of time where there’s going to be a shortage of copper, and you’re not going to see the price (just) go to $US3,” he told investors.
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