* Giant Indonesia copper mine declares force majeure
* Officials at Chile mine put conditions on meeting with
* Coming up: euro zone consumer confidence at 1500 GMT
(Adds detail; updates prices)
By Melanie Burton
MELBOURNE, Feb 20 London copper climbed above
the key level of $6,000 per tonne on Monday, buoyed by supply
worries after the world's second-biggest copper mine in
Indonesia said it could not deliver promised shipments due to
export permit issues.
Freeport-McMoRan Inc's Indonesian unit said on
Monday it hoped to resolve a dispute with the government over
its mining contract, but warned it could start arbitration
against the government and seek damages.
It said late last week that it could not meet contractual
obligations for copper concentrate shipments from the mine
following a five-week export stoppage.
That came as a strike at the world's top mine, Escondida in
Chile, caused a second week of disruption. Escondida also
declared force majeure last week.
"We expect the copper market to move into deficit in 2017
for the first time in six years, due to a combination of
tightening supply and recovering developed world demand
countering a more moderate rate of Chinese copper demand
growth," Citi said in a report.
"We believe market tightness, and associated positive
investor flows, will prompt copper prices to sustain a push
above $6,000/T (in the second-half of 2017), with peaks of close
to $7,000/T expected before year-end."
Three-month copper on the London Metal Exchange had
risen 0.9 percent to $6013.50 a tonne by 0700 GMT, paring losses
from the previous session.
Prices hit $6,204 a week ago after Escondida declared force
majeure, but industry sources said that smelters and fabricators
were still amply supplied with metal.
Escondida said on Sunday that company representatives would
attend government-sponsored talks with striking workers on
Monday as long as the union did not interfere with a shift
change for non-unionized employees.
Turnover was light with U.S. markets closed for a public
Shanghai Futures Exchange copper was up 0.4 percent
at 48,770 yuan ($7,096) a tonne.
Adding to supply concerns, Anglo American PLC said
it would temporarily suspend operations at its El Soldado copper
mine in Chile after failing to receive regulatory approval for a
redesign that would have helped keep output flowing.
Meanwhile, Philippine President Rodrigo Duterte said he
would review a minister's order to close more than half the
country's mines for environmental violations, following an
outcry from affected producers.
Elsewhere, President Donald Trump's pledge to bring massive
investments in U.S. infrastructure projects showed new signs of
life on Friday, as leading Republican lawmakers said proposals
from the administration could be in the offing.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.8671 Chinese yuan renminbi)
($1 = 6.8729 Chinese yuan renminbi)
(Reporting by Melanie Burton; Editing by Kenneth Maxwell and