Australia has slashed its forecasts for copper production and exports for fiscal 2010, blaming disruptions at BHP Billiton’s giant Olympic Dam mine for what would be the nation’s lowest output in a decade. Its estimate of losses from the mine is up to 40 percent higher that most analysts’ forecasts, and represents more than a third of total capacity of around 200,000 t/y.

Copper prices are already rising on concerns that global demand could outpace supply next year. Australia’s Macquarie Bank predicts a global copper supply deficit is looming that will take two years to correct.