Chilean copper mine mishap weighs on markets

SANTIAGO, Chile, Aug. 10 (UPI) -- Chile's worst mining disaster since the February earthquake put lives of 33 miners at risk and raised concerns that copper prices might experience another spike.

The magnitude 8.8 temblor on Feb. 27 disrupted Chile's copper production and exports but a government-led operation enabled the industry to fight back into the marketplace.

This time the fate of 33 miners trapped underground since last Thursday remains in the balance while traders weigh the impact of the incident on the market. Chile is the world's largest producer of copper.

Rescue workers said they would consider whether to continue to try and reach the miners after a cave-in blocked access for search crews at the San Esteban mine, near the city of Copiapo in northern Chile.

The miners were working at a depth of 1,475 feet, close to an underground emergency relief shelter, raising rescuers' hopes they would have taken refuge in the shelter.

Chilean President Sebastian Pinera said his government was determined to do everything possible to rescue the trapped miners.

"The situation is not easy," he said during a speech at the presidential palace. As long as there was hope no effort would be spared to rescue the miners, he said.

Pinera cut short his visit to Colombia and returned to Chile to oversee rescue efforts. As one of his first measures he led a coordination meeting with the directors of the rescue work and the missing miners' families in Copiapo, 500 miles north of Santiago.

With time running out for the trapped miners, the president said Chile would also welcome international expertise and specialist help.

He appealed to the United States, Peru, Canada and Australia for emergency expert help. "If there is any technology, any knowledge that will help us ... we will use it," he said.

Chile has had an exemplary safety record in its copper mines, minimizing major incidents but the February earthquake disrupted operations and affected exports.

The accident took place in the wake of market optimism over Chile's economic recovery and post-quake reconstruction. Despite the news of the accident, the Chilean peso has demonstrated a robust performance against the U.S. dollar.

Chile's monthly economic index also rose 6.8 percent on the year in June, a better-than-expected performance. In the meantime, the consumer price index gained 0.6 percent in July from the previous month.

As the world's premier copper producer, Chile reacts quickly to the outlook for the metal's production and the peso likewise reacts to movements on the global copper market.