Nikkei cited Mr Nobumasa Kemori chairman of the Japan Mining Industry Association as saying that Japanese copper smelters' production may be hampered if the ongoing labor strike at a major Indonesian copper mine drags on to next year.

The Grasberg operations of US firm Freeport McMoRan Copper & Gold Inc is one of the largest copper mines in the world. It also serves as a major source of copper ore for Japanese smelters.

Mr Kemori said that as the labor strike stretches past its second month, supplies of copper ore are becoming tighter. While none of the Japanese smelters has run out of inventory they may have to cut production if the strike continues into next year.

He said that the combination of thinner profit margins due to the strong yen and tighter supplies may make it impossible to make profits. I hope it ends soon.

(Sourced from Nikkei.com)