Oxiana has delivered a record quarterly output of copper and flagged a continuing rise in the price of the red metal, while warning of a delay to first production from its Prominent Hill project.
Copper production from the company’s flagship Sepon mine in Laos rose 24 percent to a record 17,132 tonnes during the first quarter.
Oxiana, which is merging with zinc and lead miner Zinifex Ltd under a $6.2 billion deal, also delivered an outstanding copper production of 7,958 tonnes from its Golden Grove mine in Western Australia.
Oxiana managing director Owen Hegarty told journalists in a conference call that the price of copper is going to remain under demand tension and he wouldn’t be surprised to see it pop through $US5 a pound. 

Copper on the London Metal Exchange averaged $US3.53 per pound in three months to March 31, a 31 per cent increase on the previous corresponding quarter.
“Strong demand (is) coming from China, all the fundamentals on the demand side are outstanding.”
He described the demand for copper as a “perfect storm’ despite a number of supply disruptions and labour strikes which have put pressure on supply and pushed up the price.
“Supply for copper is almost a perfect nightmare” he said.
Oxiana has reiterated its copper production guidance for 2008 of 60,000 to 65,000 tonnes.

Hegarty said the company would continue its “thrust” into the nickel business, with the intention of becoming a producer of up to 100,000 tonnes per year.
Oxiana is not currently producing nickel but holds exploration projects in Western Australia and Indonesia and is set to gain exposure to near term production through its merger with Zinifex.