Strikes in mines in Chile and Indonesia lead to shortages of copper concentrate

Supply disruptions at two large mines in Chile and Indonesia have caused a global shortage of copper concentrate.

The disputes at the Escondida and Grasberg mines have "had a major impact on the global supply of copper concentrate," the Financial Times reported, adding, "For the first time in 15 years, the copper concentrate market is not in excess."

Escondida in Chile and Grasberg in Indonesia are the two largest copper mines in the world, operated by BHP Billiton and Freeport-McMoRan, respectively. In Escondida, workers have been on strike since February while supplies from Grasberg have been hit by an export ban since January. Two deposits provide 8-9 percent of the world supply of mined copper.

There is a possibility that Escondid's strike could end soon, but the situation in Grasberg is more complicated as disputes involving the Indonesian government have been dragging on for many years. However, a spokesman for Freeport-McMoRan's Indonesia subsidiary said the company plans to resume copper concentrate production at Grasberg on March 21st.