A surge in copper prices is boosting shares in London’s FTSE 100 miners
Top London-listed miners' shares were given a boost this morning on the back of stronger metal prices.
Mining stocks increased 1.6 per cent as London Metal Exchange three-month copper prices this morning increased about one per cent to the metal's highest price in 20 months .
Shares in Glencore, Anglo American, BHP Billiton and Antofagasta climbed between 1.7 per cent and 2.2 per cent.
The gains were driven by increased supply pressure as the world's two biggest mines face production stoppages.
BHP Billiton declared a force majeure at its massive Escondida mine on Friday, sending copper to close up 4.2 per cent at $6,095 a tonne – its highest level since June 2015. Yesterday, the mine was attacked by vandals who forced contract workers to stop work during an ongoing strike.
At the same time, exports at the second-largest copper mine, Freeport McMoRan's Grasberg site, have been suspended for a month.
Rio Tinto, which is in a joint venture with Freeport, previously said it was mulling exiting the mine after Freeport warned it could be forced to cut production and reduce its workforce if permit issues weren't resolved by mid-February.
Freeport has now been issued a new export permit from the Indonesian government.