Mine Disputes Threaten Metals Pricing

John Wolz

Editor”s Note: The following is news from Fastener & Fixing Europe magazine.
More than 2,000 union workers are striking at the world”s largest copper mine in Chile. Wage negotiations at the Escondida mine failed last week as workers sought increases reflecting the boom in copper prices. The mine, majority owned by BHP Billiton, produces over 1.25 million tons of copper annually so disruption, currently estimated to have cut output by 60%, is expected to impact already tight world inventories of copper, Fastener & Fixing Europe reported.
Reaction on the London Metal Exchange has so far been muted, but analysts predict record highs in September if the dispute continues.
In Canada, 420 employees at Inco”s Voisey Bay nickel mine are striking following the breakdown of negotiations at the end of July. Short term, Inco does not expect the nickel market to be impacted, as it has stocks of nickel concentrate at smelting and refining operations in Ontario and Manitoba. However, talks have stalled and Voisey Bay is currently on maintenance only.
Steel analysts MEPS say that July rises in nickel costs are not yet reflected in stainless steel selling values, which will be hit in September or October. \ �2006 FastenerNews.com