Chilean copper mine Dona Ines de Collahuasi is seeking authorization to ship its copper from a third port in northern Chile, a company spokeswoman said Wednesday.

The company declared a force majeure suspension on its copper concentrate sales contracts on Dec. 20, following a fatal accident that shut down its Patache port. A force majeure clause in a contract allows a company to suspend its commitments due to an event beyond the company's control.

Collahuasi obtained the permits to ship out of the Arica and Antofagasta ports and is now seeking environmental authorization to ship from the port of Iquique, mine spokeswoman Bernardita Fernandez said.

The port of Iquique, which doesn't usually ship out copper concentrates, could allow Collahuasi to ship out up to 70,000 metric tons of concentrate a month.

In addition to using these alternative ports, Collahuasi has been sending out part of its production through the Altonorte Smelter, owned by its shareholder Xstrata PLC's (XTA.LN) Chile copper unit.

Despite the shipping alternatives the company is using, Collahuasi still hasn't lifted the force majeure suspension.

Xstrata and Anglo American PLC (AAUKY, AAL.LN) each hold a 44% stake in the mine, while a consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

With an annual output of around 550,000 tons of copper, the mine is one of the world's largest copper mines. It is located 185 kilometers southeast of the port of Iquique, high in the Andes Mountains at 4,400 meters above sea level.

Chile is the world's leading copper producer, accounting for a third of global supply.

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com
Mitsui (NASDAQ:MITSY)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Mitsui Charts.
Mitsui (NASDAQ:MITSY)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Mitsui Charts.