By Christian Moess Laursen

 

Shares in London-listed copper miners rose Friday on supply concerns stemming from output disruptions in major copper-producing South American countries, pushing prices higher, with some of the miners also boosted by stock-rating upgrades.

At 1000 GMT, shares in Anglo American, Antofagasta, Rio Tinto and Glencore were up 6.9% at 2,291 pence, 4.3% at 1,469.50 pence, 3.5% at 5,588 pence and 3.0% at 455.10 pence, respectively, comprising the four biggest FTSE 100 gainers.

The lift to copper prices comes as the Panama government asked Canadian miner First Quantum Minerals to suspend its Cobre Panama copper mine, following a ruling by the supreme court that declared the mining contract for the operation unconstitutional.

"The decision by Panama's government to shut the First Quantum's Cobre mine brings back into focus supply-side issues that have plagued the sector over the past couple of years," ANZ said in a research note.

Meanwhile, a union representing half of the workers at Peru's Las Bambas mine went on strike from Tuesday to Thursday, adding to the supply woes. The mine is one of the largest in Peru--the world's second-biggest copper producer--and is operated by Hong Kong-listed MMG.

In addition, Swiss bank UBS upgraded its stock rating for both Anglo American and Antofagasta, citing an improving copper market and the South American supply disruptions.

 

Write to Christian Moess Laursen at christian.moess@wsj.com

 

(END) Dow Jones Newswires

December 01, 2023 05:24 ET (10:24 GMT)

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