Glencore Declares Force Majeure on Copper Shipments from Altonorte Smelter
London-listed mining giant Glencore has declared force majeure on copper shipments from its Altonorte smelter in Chile, following a suspension of production at the facility, according to two industry sources.
Force majeure is typically declared when unforeseen events prevent companies from meeting contractual obligations. The sources were unable to confirm how long operations at Altonorte, which has an annual capacity of 350,000 metric tons of copper in anode form, would remain halted.
Glencore has yet to comment on the situation.
Although Altonorte’s output represents only a small portion of global refined copper supplies, which are estimated at around 26 million tons, a prolonged suspension could exacerbate the copper deficit that some analysts are forecasting for this year.
A significant portion of copper produced in Chile is exported to the U.S., where COMEX copper prices have surged to record highs amid concerns over supply shortages, partly due to tariffs on imported copper, a key metal used in power and construction industries.
On Wednesday, the most active copper contract for May settlement on COMEX hit $5.3740 per lb, or $11,847 per ton.
The force majeure declaration was first reported by Bloomberg on Tuesday.
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