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The mining sector is facing its second major power shortage following the energy crisis in South Africa that interrupted operations earlier this year. Chile is facing similar problems with urban power supplies having been cut 10%. Hydro-power supplies have been restricted because of a drought. The country is heavily dependent on copper mining and investment bank Fairfax warns that producers may see power restrictions soon if the energy crisis isn’t resolved. Production may be hit by the power problems, which would push up copper prices. The world’s biggest copper mine, Escondida, is located in Chile and majority owned by BHP Billiton (BLT). When workers called a strike in 2006 over a pay dispute, the copper price increased sharply on fears of a supply disruption.

by: Dan Coatsworth