Strike reprieve for Peruvian copper miner

The price of copper has fallen, following reports that mineworkers in Peru have called off a strike.

Workers at the country’s Southern Copper Corp called off the industrial action at the last minute, after the company agreed to resume pay negotiations.

The news from Peru has eased concerns that labour disputes could continue to substantially reduce production of the metal.

Industrial action in Peru, Chile and Mexico has been responsible for an increase in copper prices this year, with production lagging behind demand by 300,000 tons by the end of May.

At the same time, the price of the metal has been affected by a slowdown in the US housing market, which has reduced demand for copper.

Construction companies are the biggest users of the copper; approximately 400 pounds is required in the building of the average US home.

However, mortgage applications are now increasing in the US, leading analysts to forecast continued strong demand for the metal.

Other copper news includes reports from Newmont Mining Corp and Freeport McMoRan Copper & Gold Inc.

Both companies operate copper mines in Indonesia and have issued assurances that a recent earthquake in the region has not affect production.

The earthquake, which measured 8.2, struck Indonesia’s Sumatra region, triggering tsunami warnings in the Indian Ocean.