UPDATE: Chile Collahuasi CEO: 2010 Output Steady Versus 2009

30th Jun 2010 20:19

(Updates with Collahuasi's CEO's comments about expansion plans and sustained copper demand from Asia.) By Anthony Esposito Of DOW JONES NEWSWIRES SANTIAGO (Dow Jones)--Chilean copper mine Dona Ines de Collahuasi aims to maintain the same level of production in 2010 as it did last year, at 535,000 metric tons, Chief Executive Jon Evans said Wednesday. The mine was forced to shut down earlier this year for several days after protesting contract workers blockaded the access road leading into the mining compound, leading to a loss of 11,300 tons of copper contained in concentrates. "The idea is to maintain our production levels steady this year and during the rest of the year to recover lost production," Evans told reporters. Last year, Collahuasi submitted an environmental impact study for a $750 million expansion plan to increase output to 600,000 tons a year. "We are continuing to review our options for growth. The plan is to complete some pending studies and identify those options for further growth," the CEO said. Regarding the mine's recent labor problems, Collahuasi is working directly with the companies that hire contract workers to help avoid future labor conflicts, Evans said. Meanwhile, international copper prices, which are still high by historical standards, have been shaken up by the continued concerns over European sovereign debt and fears over a slowing global recovery. Copper futures in New York recently added 2 cents, or 0.7%, to $2.95 a pound, after slumping in morning trading. "We have a delicate situation in Europe, but the prospects in the U.S. are better. Also, over the mid-to-long term, Asia is expected to continue to grow. So despite short-term volatility, over the long haul the situation [with copper prices] looks interesting for the sector," Evans said. China is the world's largest consumer of copper. Collahuasi is owned by diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN), each with a 44% stake. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%. The mine's 500,000 metric tons of red metal production a year represent around 10% of Chile's annual output. Chile is the world's leading copper producer, accounting for about 35% of global output. -By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; [email protected] (END) Dow Jones Newswires June 30, 2010 15:19 ET (19:19 GMT)