Chile port strikes halt 9,000 tonnes daily copper exports -gov't

Thu Apr 4, 2013 11:40am EDT

Related Topics

* Port strike spreads across world No. 1 copper producer
    * Government calls for swift resolution
    * Half of trapped copper belongs to Codelco- minister

    SANTIAGO, April 4 (Reuters) - Around 9,000 tonnes of copper
are unable to leave Chilean ports every day due to a spreading,
costly port strike in the world's leading red metal producer,
Mining Minister Hernan de Solminihac told reporters on Thursday.
    Were the situation to worsen, some smelters could have to
halt their activities, he added. 
     The Angamos port in the city of Mejillones, in Chile's
mineral-rich north, launched a strike about three weeks ago to
seek a 30-minute lunch break, and other ports have since joined
the stoppage in solidarity, slamming the country's metal, fruit
and wood exports. 
    Chile's government on Thursday called for a swift solution
to the stoppage, but there are no clear signs of when that could
happen. The largely unexpected stoppage has turned into a major
headache for many Chile-based miners, who produce a third of the
world's red metal.
  
    Trading sources told Reuters they aren't aware of any
strike-hit, Chile-based miners buying metal on the spot market
to meet contract obligations.
    The stoppage helped push copper premiums in Singapore to
their highest since May, Reuters reported on Thursday.
    
    It has also hindered the entry of certain mining supplies,
according to the mining minister. Around half of all trapped
copper belongs to state miner Codelco, he added.
    World No.1 copper miner Codelco has said nearly
60,000 tonnes of its copper is blocked, equivalent to around
$500 million in revenue. 
    Codelco is also facing a potential 24-hour work stoppage at
all its divisions this month. 
    Experts say presidential elections in November have also
contributed to an uptick in labor unrest in Chile.
    Enthusiasm surrounding a stronger productive year in the
Andean country on the back of new deposits and revamped old ones
has somewhat been tempered by the port strike.
    Chile boosted its output of the red metal by 3 percent to
5.455 million tonnes during all of 2012.
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