BHP shuts biggest copper mine

BHP Billiton shut the world's biggest copper mine after striking workers in Chile blockaded all roads to the site, cutting off metal supplies at a time of surging demand.

Copper prices jumped 2.7 per cent after BHP Billiton, the world's largest miner, said it called off talks with the union following the blockade. A 12-day-old strike by 2052 miners seeking higher pay at the Escondida mine had already cut production to as little as 40 per cent of capacity.

Prices of copper have more than doubled in the past year as strikes disrupted supplies and demand soared from China. Mine management said the dispute was costing owners including BHP Billiton, Rio Tinto Group and Mitsubishi US$16 million ($25 million) in profit a day.