Billiton exec sees firm copper prices in 2007

SIERRA GORDA, Chile, March 26 (Reuters) - BHP Billiton (BHP.AX)(BLT.L), the world's biggest miner, said on Monday it saw copper prices staying firm this year, although it preferred not to offer precise projections.

Billiton Base Metals President Diego Hernandez said the price would likely be supported by demand from China, which is seen going back to the market after depleting its copper inventories last year amid record prices.

"We don't do price projections," Hernandez said at a ceremony to inaugurate a production ramp-up at its Spence copper mine in northern Chile. "We believe that the market is firm and that the price would have to be high this year if we look at supply and demand."

Billiton inaugurated the $1 billion Spence mine on the eve of this week's 6th annual World Copper Conference in Santiago.

The conference occurs together with what is known as CESCO week, bringing together hundreds of mining executives from around the world to discuss factors affecting the industry, including the high prices for the metal.

"It was something we were expecting because last year the Chinese bought less because they used a lot of inventory and have now started to go back to the market," Hernandez said of copper prices that have jumped above $3 per pound in recent days.

The Spence copper project in Chile will produce 180,000 tonnes of copper cathodes in 2007. The project started production in December and will produce 200,000 tonnes of copper cathodes per year once it reaches design capacity in the third quarter of this year.