Australian mining giant declares 'force majeure'<\/p>\n
MELBOURNE (Reuter): Australian mining giant BHP said yesterday
\nit had declared 'force majeure' on customers of its idle Ok Tedi
\ncopper mine in Papua New Guinea because of a drought in the South
\nPacific nation.<\/p>\n
BHP -- the Broken Hill Pty Co Ltd -- said the prolonged dry
\nspell would prevent it meeting annual contracts to supply copper
\nconcentrates from the mine.<\/p>\n
The force majeure, relieving BHP of its contractual
\nobligations, would come into effect in 60 days, BHP spokesman
\nVincent Bull said from the PNG capital, Port Moresby.<\/p>\n
The mine has been crippled by severe drought which has dried
\nup its sole supply line, the Fly River which winds from the
\nparched western highlands to the coast.<\/p>\n
The mine last year shipped 200,000 tonnes of copper contained
\nin concentrate, but supplies have been unable to reach port since
\nAugust 11. Shipments were also disrupted earlier in the year.<\/p>\n
\"We have been postponing shipments from one month to the next
\nbut we have got to the point now where we're not able to catch up
\nwith all those deferred shipments before the end of the year,\"
\nBull told Reuters by telephone.<\/p>\n
\"By declaring force majeure we have given them a choice -- if
\nforce majeure continues for 60 days they have an option of
\ncanceling the tonnage they would otherwise have been forced to
\ntake, or schedule (the shipments) at a later date,\" he added.<\/p>\n
BHP operates the Ok Tedi mine and owns 52.6 percent of it.
\nCanada's Inmet Mining Corp owns 17.4 percent and the Papua New
\nGuinea government has the rest.<\/p>\n
Ok Tedi has long-term supply contracts with Germany's
\nNorddeutsche Affernie, Finland's Outokumpu Oy, Philippines
\nAssociated Smelting and Refining Corp (PASAR), South Korea's LG
\nMetals, Mitsui & Co Ltd and the Japanese smelter pool of seven
\nsmelting companies.<\/p>",
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