Copper reaches highest price in three months

BHP's Olympic Dam mine. Source: BHP

Copper has risen to a three-month high of $US5700 ($8193) per tonne this week in a sign the base metal is bouncing back from its COVID-19 slump.

The outright price of the commodity on the London Metal Exchange closed at $5774 per tonne on Tuesday.

Stronger demand from China, the world’s top consumer of copper has ushered in higher levels of purchasing.

The commodity has faced scathing market results recently, dropping to as low as $4300/mt during March.

Copper production is expected to climb by 3.1 per cent between 2020 and 2029 with global output increasing by more than six million tonnes, according to a report by Fitch solutions Macro Research in March.

South Australia is the country’s main copper explorer, with national exploration budgets for copper reaching $272 million in 2019.

BHP is currently working with the South Australian Government to receive approval for a copper production increase from 200,000 to 350,000 tonnes per annum at the Olympic Dam mine in South Australia.

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