Copper rose on Monday after a 6.3 magnitude earthquake hit Chile, the owner of the largest producer of copper in the world.
The earthquake affecting the northern part of Chile at 2:01 p.m. local time could be felt as far away as Peru causing concerns among traders about production of the red metal.
The Collahuasi mine in the north - owned by Xtrata Plc and Anglo American Plc - did not experience damage according to a spokesperson, Reuters reported. The mine produces 8.2 percent of the country's copper.
Government-owned Codelco, the world's largest mining company, reported that its largest division in the north was unaffected. It includes the important Chuquicamata mine.
The natural phenomena hit the region of Iquique but no victims were found. With more than two thousand volcanoes, Chile is one of the most earthquake-sensitive nations in the world.
Copper for March delivery rose 1.150 or 0.35 percent to $3.310 a pound on the Comex division of the New York Mercantile Exchange. London copper rose at the London Metal Exchange gaining $19.50 or 0.27 percent to $7,263 per metric ton.
Moreover, the recent winter storms in China prior to the Lunar year celebration have caused China's second largest producer of the metal, to reduce supplies by as much as 70 percent. Jiangxi Copper Co. stopped production due to power shortages and difficulties for transporting materials.
On Friday, copper slumped after the U.S. government showed payrolls fell unexpectedly in December.
Today, London copper warehouse stocks were down by 750 metric tons to 177, 050 metric tons, according to Reuters. Copper supplies on the COMEX division of the New York Mercantile Exchange remained firm on Friday at 13,978 short tons.