UPDATE: 9% Of Planned '09 Copper Output To Be Removed-Xstrata

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(Adds quotes from Xstrata and details)


LONDON -(Dow Jones)- Around 9% of global copper production planned for 2009 is
expected to be curtailed due either to profit-based production cuts or
operational underperformance, Anglo-Swiss miner Xstrata PLC (XTA.LN) said
Thursday.


This is equivalent to around 1 million metric tons of copper this year, the
company said.


The amount is made up of more than 600,000 tons of unprofitable production
that industry participants have announced the curtailment or suspension of, with
the remainder expected to be the result of operational underperformance such as
pit wall problems, lower grades and mill availability, Xstrata said.


"Further supply cuts are also likely in the event that prices remain depressed
for a prolonged period," Xstrata added, noting cancellations or deferral of
growth projects have removed more than 2.8 million tons of new copper supply
over the next four years.


"These actions are likely to assist a rapid tightening of the physical market
when demand increases as a result of fiscal stimulus packages and improving
global economic conditions," Xstrata added.


Copper prices are 65% down from their all-time high of $8,940/ton seen in
July.


-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@
dowjones.com