BNamericas reported that Chile's mining ministry sees no reason to revise down copper price estimates following the recent declines. Mr Hernán de Solminihac mining minister of Chile said that "We're always looking at factors that could have an impact on prices, mainly through Cochilco and what we see so far is that demand is higher than supply. Therefore we expect higher copper prices for at least the next 2 to 3 years. Mr de Solminihac said that "We're witnessing a particular situation in the global economy and we're obviously monitoring what is going on. If needed, we will evaluate whether price estimates need to be reviewed, but we think prices will remain even higher than levels seen now." He said that it is difficult to set a specific price at which the government would review estimates, especially since the current fluctuations are based on specific situations, such as the current macroeconomic turmoil and not on market fundamentals. However, once projects currently being developed in Chile and other countries start operations, supply could match or even surpass demand, prompting a structural decline in copper prices. Mr Andrés Mac Lean head of Cochilco said that early in September, Cochilco affirmed its projection of USD 4.04 per lb for the average red metal price in 2012 and USD 4.17 per lb this year. The copper market deficit this year is expected to total 560,000 tonnes slightly up from previous forecasts due to a reduction in expected output. Chile is expected to be one of the main contributors to the higher than expected supply deficit, since output will be lower than originally forecast as a result of weather and labor related disruptions as well as technical problems at some operations. In 2012, tight market conditions are expected to remain in place, albeit at a lesser level, with a forecast deficit of 179,000 tonnes.

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