Olympic Dam Delay Could Hurt Copper Supply

CNBC reported that the world’s supply of copper will tighten beginning in late 2013 if BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT) delays the expansion of its Australian Olympic Dam mine.

As quoted in the market news:

The expanded output from Olympic Dam would eventually account for around 4 percent of global copper needs and 20 percent of uranium supply, according to environmental impact documents lodged in Australia.

That’s up from existing output of around 1 percent of copper consumption and 4 percent of uranium supply.

A delay is unlikely to have much impact on near-term spot prices, but a reduction of that magnitude in future supplies will impact longer-term price assumptions.

Click here to read the full CNBC report.