Could Aussie Supply Issues Cause World Deficit?
On the supply side, things are looking tight, at least for Australia, the world’s 5th-largest producer of copper. A recent report from the Australian Bureau of Agricultural and Resource Economics (ABARE) forecasted less production for next year: Although as recently as September, ABARE had forecast Australia would export 310 million tonnes of refined copper, on Tuesday, that projection was slashed by 15.8 percent, down to 261 million tonnes. And it’s not just exports that are expected to drop; the forecast for refined copper output also took a hit, dropping by 13 percent to 408,000 tonnes. Lest you think this is a reaction to depleted demand, ABARE cites problems with BHP Billiton’s Olympic Dam mine for most of the production decline. The Olympic Dam mine sits on the 4th-largest copper deposit in the world and produces roughly 200,000 tonnes of copper each year. But an accident in early October shut the mine’s main haulage system, cutting production by 75 percent. BHP Billiton expects
