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