Southern Copper sees lower prices

Print this page Posted on : 10-30-2008 by recycleinme.com

Southern Copper Corp, one of the world's largest copper producers, said on Tuesday it sees copper prices staying low for the rest of 2008 and possibly through 2009 because of the global economic crisis. On Monday, the company reported its third-quarter net profit fell 33 per cent versus the same period a year ago. Copper prices have more than halved since hitting record highs of above $4 per pound in July. "The credit crisis and the curtailment of high-cost operations are new factors to add to the structure of copper supply," Mr Genaro Guerrero, Southern's Vice-President of Finance, said in a conference call with reporters.Southern Copper has said it will evaluate its metals projects at El Arco, Los Chancas and Angangeo, as part of a broader review of capital expenditures. It emphasised it has $1.1 billion as cash-on-hand as credit markets dry up. The company has promised to move ahead with plans to develop its Tia Maria copper property and expand its operation at Toquepala, both in Peru.

Source : Business Line