COPPER NEARS US$7,000 THRESHOLD

Wed, 30 Aug 2017 09:40:33 +0000

By Buumba Chimbulu

THE price of copper on the international market has continued to rise and expected to reach the US$7,000 threshold a tonne. It is currently trading at US$6, 713.0 owing to genuine excitement among investors over worldwide growth and capacity cuts.

And an international economist, Lubinda Habazoka, said the development is good for the economy which largely depends on copper and cobalt while calling for the nationalisation of all mining companies.

The price of copper has reached one of its highest level since May 2015 on hopes of a pickup in demand from China and infrastructure development in the United States.

The red metal has continued to register increase in its prices for the last two months, creating more positive prospects for the Zambian economy whose main anchor is still on copper.

Copper prices are expected to continue rising during this year, according to the latest Chinese trade data. This development may also mean that mines which slowed on production and retrenched workers in Zambia would get back to normal.

And gold prices also rose for a third day yesterday to hit its highest since November as mounting geo-political tensions over a new North Korean missile launch stoked demand for safe-haven.

Meanwhile, Dr. Habazoka said it was unfortunate that some mining companies were not interested in taking advantage of the rising copper prices.

“The rise in copper prices is a good development for Zambia as you know the economy depends on copper and the mineral to sustain the exchange rate,” he said.

Dr. Habazoka said it was unfortunate that some mining companies were threatening to retrench workers.