Aditya Birla (ASX:ABY) Copper Production Up 35% in June Quarter

Australia's copper explorer Aditya Birla Minerals Limited (ASX:ABY) said its total copper production rose 35.24 per cent in the quarter ended 30 June 2010 over the same quarter in 2009.

The rise in overall production during the quarter was mainly due to higher quantity of ore processed, higher throughput and recovery rate at Nifty Sulphide operations and also due to trial production from Esperanza low grade ore at Mount Gordon.

Global consumption contracted for most major commodities in 2009, the decline would have been very much worse but for China's rapidly deployed stimulus measures. The same was the case for copper, said Aditya Birla.

The company says China is likely to deliver a lower rate of growth in consumption, but this will be mitigated by a better performance in other parts of the world. Therefore, the global copper market would be on track for a return to annual deficit in 2011.

Aditya Birla also expects copper prices to remain volatile in the short term and to strengthen in the medium term. Supply side constraints remain and new projects are plagued by ever increasing capital/operating costs, resource nationalism, difficult credit markets and future uncertainties, the company said.


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Aditya Birla Minerals Limited