Anglo American restarts copper mines in Chile after earthquake

Anglo American (LSE: AAL) updated investors on its Chilean copper operations following the Saturday’s earthquake, which hit 8.8 on the richter scale. The international mining group has six operational sites in Chile, of which four have been affected by the earthquake. Production was interrupted at the Los Bronces, El Soldado, Mantoverde mines and the Chagres copper smelter.

The company said power was partially restored to the operations during Saturday night and following detailed inspections production began to ramp up on Sunday. Anglo American is continuing to review the situation, and it will to return to full and safe production as soon as it is able to do so.

“We are targeting an efficient resumption of full production as the situation allows. Anglo American is also reviewing how best to support the government and people of Chile at this time of need", Anglo American CEO Cynthia Carroll commented.

During 2009, the affected Anglo American mine operations produced 341,300 tonnes of copper, representing a significant proportion of Anglo American's 669,800 tonnes of total copper output during the year. The Chagres smelter produced 137,700 tonnes of anodes in 2009.The company’s other two mines, Mantos Blancos and the jointly owned Collahuasi mine were unaffected by the earthquake.

Anglo American also noted that its three Scaw Metals facilities in Chile, had also been affected with limited damage at two sites. However the Concepcion site has been more severely damaged and a detailed evaluation is underway.

In a note to investors,  London-based stockbroker Fairfax said the earthquake in Chile has disrupted approximately 5 percent of the world’s copper production. Consequently, the analyst believes copper prices could spike to over US$7,500 per tonne.  http://www.proactiveinvestors.co.uk/companies/news/13877/anglo-american-restarts-copper-mines-in-chile-after-earthquake--13877.html