Copper will see a much higher valuation by 2012, the industry faces severe shortages and strikes are spreading around the world.

A prolonged strike at Chile's Escondido mine continues to affect copper supply. Workers at the mine have been striking for nearly two weeks, seeking higher wages and an $11,000 annual bonus. The mine accounts for 7% of the world's annual copper output. It's estimated the closure has eliminated nearly 36,000 tons of copper from the global marketplace, says the Dow Jones Newswires. Reuters reported progress has been made in labor discussions, raising expectations that workers will soon head back to work.

Macquarie says 2% year-over-year supply growth in 2011 is "optimistic." We believe delays and disappointments for copper production increases will continue to constrain supply. This could keep copper prices at relatively high levels despite a weaker-than-expected global economy.

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Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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