outlook

SYDNEY (Dow Jones)--Australian copper production is forecast to jump by 24% in the
2007-08 fiscal year to 1.1 million metric tons with the commissioning of some new
projects, Australia's chief commodities forecaster Abare said Monday.
This follows a decline of about 4% to 900,000 tons during the last fiscal year because
of lower production at Xstrata Plc's (XTA.LN) Mount Isa operation, BHP Billiton
Ltd.'s (BHP) Olympic Dam and Newcrest Mining Ltd.'s (NCMGY) Telfer mine.
New projects include Copperco's (CUO.AU) Lady Annie mine in Queensland and
Newcrest Mining's Ridgeway Deeps project in New South Wales, among others that are
all expected to start output in mid- to late 2007.
Australia's refined copper output for 2007-08 is forecast to rise 35% to just
under 608,000 tons on expected higher output at the Townsville copper refinery, Abare
said.
This fiscal year ending June 30, refined copper output is estimated to fall 2% to
451,000 tons on lower output from Olympic Dam.
Despite the drop in output, export earnings will increase by an estimated 20% in
2006-07. For the next fiscal year, Australian copper export earnings are expected to rise
by another 14% to A$7.7 billion.
"An increase in export volumes is expected to more than offset the effect on
earnings of forecast lower export prices," Abare said.

-By Elisabeth Behrmann, Dow Jones Newswires; 61-2-8235-2965;
[email protected]