Macquarie Bank Ups Copper Forecast, BHP Executive Responds to Rio Tinto Alliance Termination

Macquarie Bank has revised its forecast for copper prices, projecting a 14% increase to $1.75 a pound for 2009 and a 39% hike to $2.50 a pound for 2010. Meanwhile, a BHP executive has stated that Rio Tinto is unlikely to sell its stake in the Escondida copper mine in Chile following the termination of a planned alliance with Aluminum Corp. of China. The Ramu nickel project in Papua New Guinea is also on track for commissioning later this year.

Key Takeaways:

• Macquarie Bank has upgraded its copper price forecast for 2009 by 14% to $1.75 a pound.
• The bank has also projected a 39% increase in copper prices to $2.50 a pound for 2010.
• BHP executive suggests that Rio Tinto is unlikely to sell its stake in the Escondida copper mine in Chile.
• Highlands Pacific's Ramu nickel project is on track for commissioning later this year.
• Wire and cable makers in China have been benefiting from government spending, but this may not sustain the current copper price rally.
• Chinese wire and cable makers' sales have increased, driven by government stimulus packages.

Statistics:

• Macquarie Bank's 2009 copper price forecast is $1.75 a pound (up 14% from previous forecast).
• Macquarie Bank's 2010 copper price forecast is $2.50 a pound (up 39% from previous forecast).
• Highlands Pacific's Ramu nickel project cost is $1.37 billion.
• BHP's stake in the Escondida copper mine in Chile is unlikely to be sold.

Sources:

• Dow Jones Commodities News via Comtex, Sydney, Jun 08, 2009
• Dow Jones Newswires, SANTIAGO
• Dow Jones Newswires, SYDNEY
• Dow Jones Newswires, SHANGHAI
• Dow Jones Newswires, NEW YORK
• Dow Jones Newswires, LONDON
• Copyright (c) 2009 Dow Jones & Company, Inc.