Chile's Copper giant Codelco sees global tightness in 2012

SANTIAGO (Scrap Monster): Chile's copper mining giant Codelco, expects the global copper market to remain tight in 2012, is optimistic about prices, and could issue debt in the second half if conditions are favorable.

The Chilean copper giant had covered its needs for the next six to seven years. Chile's shaky energy grid needs significant new investment after years of neglect, exacerbated by a devastating 2010 earthquake and droughts. But the mounting opposition to hydro-power, coal-fired thermoelectric plants and wind farm projects is making investors jittery.

If China grows 7.5%, they believe supply or demand will again be quite tight in 2012. They are optimistic on prices in 2012. The company believed that industry could delay copper projects if copper prices fall below $3 a pound.

Codelco was interested in getting into Mexico's mining sector in future, as the company eyes foreign markets for exploration. It expects an initial ruling in an acrimonious stake option spat with global miner Anglo American between the end of 2012 and mid-2013.

Codelco is the Chilean state owned copper mining company and It is the world's largest copper producer.