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Copper Market Sees Turbulent Week Amid Record Demand

Strategic Insights

— 1 min read

Copper prices saw significant fluctuations amidst record-breaking demand from various industries, while key players in the market faced numerous challenges. Inmet Mining Corp.'s planned merger with Lundin Mining Corp. will create a top-tier copper producer worth C$9 billion, and demand for the metal shows no signs of slowing down. Meanwhile, Vedanta Resources PLC faced a court battle over its alumina refinery expansion, and Rio Tinto's aluminum business declared force majeure due to floods in Australia.

Key Takeaways:

  • Inmet Mining Corp.'s (IMN.T, IEMMF) merger with Lundin Mining Corp. (LUN.T, LUNMF) will create a combined entity worth C$9 billion, the 8th largest copper producer globally.
  • Vedanta Resources PLC (VED.LN) faced a court order to stop the expansion of its alumina refinery in eastern India's Orissa state.
  • Rio Tinto PLC's (RIO) aluminum business declared force majeure on supply due to the impact of floods in Australia's Queensland state.
  • Corporacion Nacional del Cobre de Chile's (CCU.LN) Andina division halted underground mining activities after a fire.
  • Aurubis AG (NDA.XE) sold shares at EUR41.50 each in its capital increase.
  • KGHM Polska Miedz SA (KGH.WA), Poland's largest copper producer, is likely to post a record-high net profit for 2010.
  • Ormonde Mining PLC (ORM.LN) saw its shares soar after reaching a "major milestone" in its tungsten mine project.
  • China Nonferrous Metals Co. (8306.HK) is expected to commence output at its Mulyanshi Copper project in Zambia in December 2011.

Statistics:

  • C$9 billion: Combined market value of Inmet Mining Corp.'s merger with Lundin Mining Corp.
  • EUR41.50: Price per share in Aurubis AG's capital increase.
  • 2010: KGHM Polska Miedz SA expected to post record-high net profit.
  • December 2011: China Nonferrous Metals Co. to commence output at Mulyanshi Copper project.

Sources:

  • Dow Jones Commodities News via Comtex, January 13, 2011.
  • Dow Jones Newswires.
  • Copyright (c) 2011 Dow Jones & Company, Inc.

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