COPPER UPDATE FOR 29 AUGUST

COMMODITY MARKETS FALLING NEARLY 20 %

DURING THE THIRD QUARTER HAVE UNDERMINED

CONFIDENCE IN THE RESOURCES SUPERCYCLE

BUT SOME COMMENTATORS SAYIT IS A TEMPORARY

CORRECTION WITH LONG TERM FUNDAMENTALS

UNCHANGED.PRICE SOF COMMODITIES SUCH AS

COPPERHAVE CORRECTED SUBSTANTIALLY AMID

FEARS THAT CHINESEGROWTH IS SLOWING AT A

TIME WHEN THE US AND EUROPE ARE REPORTING

LITTLE ORNO GROWTH. BUT ANALYSTS SAY CHINESE

ECONOMIC GROWTH CYCLE HAS A LONG WAY TO GO.

A POST OLYMPICS RESURGENCE IN INFRASTRUCTURE

PROJECTS ALONG WITH SMALL CHANGES IN GOVERNMENT

POLICYTO SHIFT FOCUS TO GROWTHFROM FIGHTING INFLATION

WILL PROVIDE A NEW LEASE OF LIFE TO THE DERAILED

METALS RALLY. ANALYSTS SAY THE LONG LONG LABOURDAY

WEEKEND IN THE US WILL BRING A CLEARER DIRECTION

AS LIQUIDITY IMPROVES AND NORMAL ECONOMIC ACTIVITY

RESUMES.

COPPERLOOKS POISED FOR A FIRM REBOUND DURING THE

FOURTH QUARTER AMID SIGNS OF A TIGHTENING CHINESE

DOMESTIC COPPER MARKET AFTER MONTHS OF DESTOCKING.

ENERGY PRICES IN CHINA, THE BIGGEST PRODUCER OF

ALLUMINIUM SHOULD PUT A FLOOR UNDER PRICES OF THAT

METAL.

THE ONLYCONCERN SEEMS TO BE THAT WEAK ECONOMIC

NUMBERS ARE CONTINUINGWHICH MAY UNDERMINE PRICES

BUT THE OUTLOOK FOR 2009 REMAINS ROBUST AND A BULLISH VIEW FOR A

TARGET OF AVERAGE $ 5 PER POUND NEXT YEAR COULD BE

MAINTAINED. THE MOST ACTIVE DECEMBER COPPER CONTRACT

FELL 4.45 CENTS TO SETTLE AT # 3.4005 A POUND ON THE

COMEX DIVISION OF THE NEWYORK MERCANTILE EXCHANGE

THURSDAY.