Chilean Mining Minister Laurence Golborne said on Saturday that China's move to make the yuan currency more flexible should have no significant impact on copper exports from the world's No. 1 producer.Golborne said, however, that the revaluation could hit copper prices in the short term if uncertainty over the scope of the measure persisted."We have to see how gradual it is, but it should not have a significant impact. If it is a sharp revaluation process which means less competitiveness for Chinese industry, that could translate into lower demand for commodities," he told Reuters in a telephone interview."But I don't think that will happen, as the Chinese have always shown plenty of care with their economy," he added."It is possible it will have some kind of impact on prices, because if it is not completely clear, the market could react -- it could generate nerves and volatility."But Major Chilean copper miner Antofagasta Minerals saw a stronger yuan helping boost demand of the metal in China."It would be positive for copper because top consumer China will find it's cheaper to buy copper in yuans," CEO Marcelo Awad told Reuters via e-mail. "Bottom line, it seems that the logic here is that we will have a stronger yuan and that is positive."China's central bank said on Saturday it would gradually make the yuan's exchange rate more flexible, a week before a G20 summit, strongly suggesting it was ready to break the currency's 23-month-old dollar peg.It all but ruled out a one-off revaluation or major appreciation, saying there was "no basis for big fluctuations or changes" in the exchange rate.(Editing by Peter Cooney)News posted by www.newsinfoline.com
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