Chile Collahuasi Seeking Approval To Ship From A Third Copper Port
03 February 2011 - 7:45AM
Dow Jones News
Chilean copper mine Dona Ines de Collahuasi is seeking
authorization to ship its copper from a third port in northern
Chile, a company spokeswoman said Wednesday.
The company declared a force majeure suspension on its copper
concentrate sales contracts on Dec. 20, following a fatal accident
that shut down its Patache port. A force majeure clause in a
contract allows a company to suspend its commitments due to an
event beyond the company's control.
Collahuasi obtained the permits to ship out of the Arica and
Antofagasta ports and is now seeking environmental authorization to
ship from the port of Iquique, mine spokeswoman Bernardita
Fernandez said.
The port of Iquique, which doesn't usually ship out copper
concentrates, could allow Collahuasi to ship out up to 70,000
metric tons of concentrate a month.
In addition to using these alternative ports, Collahuasi has
been sending out part of its production through the Altonorte
Smelter, owned by its shareholder Xstrata PLC's (XTA.LN) Chile
copper unit.
Despite the shipping alternatives the company is using,
Collahuasi still hasn't lifted the force majeure suspension.
Xstrata and Anglo American PLC (AAUKY, AAL.LN) each hold a 44%
stake in the mine, while a consortium led by Mitsui & Co.
(MITSY, 8031.TO) holds the remaining 12%.
With an annual output of around 550,000 tons of copper, the mine
is one of the world's largest copper mines. It is located 185
kilometers southeast of the port of Iquique, high in the Andes
Mountains at 4,400 meters above sea level.
Chile is the world's leading copper producer, accounting for a
third of global supply.
-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919;
carolina.pica@dowjones.com
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