COPPERCO INTERESTAnother miner, CopperCo Ltd (CUO.AX), which...

COPPERCO INTEREST

Another miner, CopperCo Ltd (CUO.AX), which entered voluntary administration on Nov. 27, was also attracting potential buyers, which sources said could include another Queensland mining company, Ivanhoe Mines Australia Ltd (IVA.AX), 83 percent-owned by U.S. mining magnate Robert Friedland's Ivanhoe Mines Ltd IVO.TO. Ivanhoe was not immediately available for comment.

Receivers Ferrier Hodgson expect to start the sales process for CopperCo assets early in 2009.

Both companies suffered losses by selling copper at the prevailing London Metal Exchange cash settlement price, paid up front as the copper left the mine. But under what's called provisional pricing, the actual price was adjusted weeks later when the product was delivered, by which point copper prices had tanked, reducing sales revenue.

Copper prices zoomed as high as $4.00 a pound in April, but have since slumped to about $1.30 as demand for industrial materials plummeted in the wake of the global credit crisis.

Copper fell by 13 percent in September and 36 percent in October at the height of Matrix's difficulties.

Prices were not likely to rise above $2.00 a pound over the next two years, according to Australia & New Zealand Bank chief commodities strategist Mark Pervan. (Reporting by James Regan; Editing by Lincoln Feast)

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