MercoPress. South Atlantic News Agency

Excellent prospects for copper and Chile

An average copper price between 1,62 and 1,66 US dollars per lb for the current year was estimated by the Chilean Copper Committee, Cochilco, up form the previous estimate of 1,44 to 1,48 US dollars.

For next year Cochilco estimates a copper price in the range of 1,46 to 1,50 US dollars. These estimates are well above those published last September by the Chilean Central Bank which in its latest bulletin forecasted an average 1,57 US dollars in 2005 and 1,32 US dollars next year.

Patricio Cartagena, Cochilco vice-president said that the "persistence of high prices in the copper market exposes several situations such as a lesser production than expected in the main producing countries, labour strife with some operations as well as natural disasters", which have been decisive in contributing to the annual average price of 161,308 US cents per lb.

As to total Chilean copper exports they will reach 16,527 billion US dollars in 2005 and 15,504 billion in 2006.

Total Chilean copper production is forecasted at 5,37 million tons this year and 5,51 million tons in 2006, adds Cochilco.

For each US cent improvement in the average copper price, Chile receives additional income between 100 and 120 million US dollars.

Chile is the world's leading copper producer and the country's second export item has become molybdenum, a by product of copper refining.

Codelco, Chile's huge copper corporation is the leading company in the industry followed by foreign companies, BHP Billiton, Anglo-American, Phelps Dodge and Noranda.

Other leading copper producing countries in Latinamerica include Peru and Mexico.