Like many other global mining companies, Freeport is staking much of its future copper growth on developing new mines in Peru. Action taken by Humala's government to raise taxes and squeeze miners' profits could, therefore, curtail foreign investment in Peruvian mining projects and reduce future copper supply, analysts say. "Any disruption to the expectations of Peru would mean a higher copper price for longer," Radclyffe said.
The metals markets have come to rely on the expansion of Peruvian copper mining to meet projected demand for the red metal, largely fueled by rapid growth in Asia. As existing copper mines age, ore grades the world over have deteriorated, leading to speculation about "peak copper."
Adding to the near-term uncertainty, a national strike by the country's miners was set to begin this week. Workers are demanding better retirement benefits.-- Written by Scott Eden in New York >To contact the writer of this article, click here: Scott Eden. >To follow the writer on Twitter, go to http://twitter.com/ScottEden. >To submit a news tip, send an email to: firstname.lastname@example.org
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV