(Recasts with updated prices at 1630 GMT)
By Polina Devitt and Eric Onstad
LONDON, May 23 (Reuters) - U.S. copper prices rose to
their highest in more than three weeks on Friday, buoyed by a
weaker dollar and worries about problems at a big mine in Congo.
U.S. Comex copper futures climbed 3% to $4.82 a lb,
the strongest since April 30.
Benchmark three-month copper on the London Metal
Exchange (LME) gained 1.2% to $9,617 a metric ton by 1630 GMT,
its strongest since May 14.
Earlier base metal prices ticked lower after U.S. President
Donald Trump said he would impose 50% tariffs on goods from the
European Union, but bounced back as the dollar index fell
to its lowest in over three weeks.
A weaker U.S. currency makes dollar-priced metals more
attractive for buyers using other currencies.
Copper was also bolstered by concerns about the huge
Kamoa-Kakula copper mine in the Democratic Republic of Congo,
the biggest copper producer in Africa and one of the world's
largest.
China's Zijin Mining warned that a suspension of activity
due to seismic activity may have an "adverse impact" on
achieving planned production this year of 520,000 to 580,000
tons.
"It sounds fairly bad and obviously it's a pretty big mine,"
said Dan Smith, managing director at Commodity Market Analytics.
Co-owner Ivanhoe Mines ( IVPAF ), however, disputed Zijin's
statement, saying an investigation was still in progress.
Copper inventories in warehouses monitored by the Shanghai
Futures Exchange fell 9% to 98,671 tons this week,
while stocks in the LME-registered warehouses lost 8% to 164,725 amid continuing inflows into the COMEX-owned
warehouses . The COMEX inventories are up 3% at
174,607 this week.
In the LME system, the spread between the cash against the
three-month copper contract remained at a premium,
indicating some tightness for the nearby supply due to the
outflows from the stocks.
The premium, known as backwardation, was last at $32 per
ton.
Meanwhile, LME aluminium rose 0.4% to $2,466.50 a
ton; zinc added 0.3% to $2,705, nickel gained
0.7% to $15,605, lead climbed 1.1% to $1,991 and tin
advanced 1.6% to $32,910.