stocks on major metal exchanges are down, indicating strong
demand, Glencore Xstrata Plc head of copper Telis Mistakidis
said during the companys first-half earnings conference
London Metal Exchange
copper inventories are about the same as they were at the
beginning of the year, he said, but they have fallen markedly
on the Shanghai Futures Exchange and Comex.
"In Shanghai, there
was about 1 million tonnes of copper sitting in bonded
warehousesthats gone down to 300,000 tonnes,"
Mistakidis said. "Consumption is also better than people give
it credit for because of the scale of people consuming
China and India are
now major consumers, which was not the case when mines such as
Escondida in Chile were coming on-stream in the 1980s, he
"We are seeing signs
of growth and we think the market has been a lot better than
people thought," Mistakidis said. "As we move into the second
half, we will see improvement."
Production at the Mutanda solvent extraction-electrowinning
(SX-EW) plant in the Democratic Republic of Congo is still on
target to hit 200,000 tonnes on an annualized basis by the end
of this year, he said, while production at the Katanga
operations will hit 270,000 tonnes by the end of next year.
There also is potential to expand by a further 80,000 tonnes at
Mutanda through concentrate production.
A version of this article was first published by AMM sister
publication Metal Bulletin.