Copper prices rise on Grasberg supply risks
Copper prices posted slight gains on major exchanges as investors weigh the potential impact of a production halt at Indonesia’s Grasberg mine, the world’s second-largest copper operation.
On the London Metal Exchange, three-month copper contracts traded at USD 9,994 per tonne, up marginally from Friday’s close of USD 9,989. In New York, COMEX copper stood at USD 4.6355 per pound, 0.17% higher, while in Shanghai the price rose 0.35% to 80,100 yuan per tonne.
Freeport-McMoRan, operator of the Grasberg mine, has suspended underground operations after an incident involving heavy mud trapped a group of workers. Indonesian media reported that two bodies have been recovered, while five miners remain missing. The company continues rescue operations but has not provided a timeline for resuming full production.
Grasberg accounts for a significant share of global copper supply, and prolonged disruption could tighten an already constrained market. Analysts at Citigroup recently noted that copper could approach USD 12,000 per tonne by 2026, driven by supply risks and resilient demand from the energy and technology sectors.
