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Copper gained in London on speculation that a labor dispute at Teck Cominco Ltd.'s Highland Valley mine may result in a work stoppage, reducing supply of the metal used in pipes and wires.

Workers at the mine, Canada's largest producing deposit of copper, will strike on Oct. 1, unless a new labor agreement can be reached before then, Richard Boyce, president of union local 7619 of the United Steel Workers of America, said yesterday in a statement. Prices of copper have soared 75 percent this year, partly because of disruptions at mine in Chile and Mexico.

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``Copper is in a very, very short supply,'' David Thurtell, a London-based analyst at BNP Paribas, said today by telephone. BNP Paribas is a member of the London Metal Exchange.

Copper for delivery in three months gained $89, or 1.2 percent, to $7,699 a metric ton at 10:02 a.m. on the London Metal Exchange. Earlier, it rose as much as $120, or 1.6 percent, to $7,770 a ton.

Highland Valley produced 179,000 metric tons (394.6 million pounds) of copper in 2005. That's about 1.23 percent of the 14.9 million tons of the metal the London-based International Copper Study Group estimates companies mined around the world last year.

Strikes at Chile's Escondida, the world's largest copper mine Chile, and at Grupo Mexico SA cut production earlier this year.

Copper Inventory

Demand for copper will exceed mine output by 52,000 metric tons through 2006, after a deficit of 360,000 tons last year, Goldman Sachs Group Inc. forecast on Sept. 18.

Inventory of copper monitored by the LME dropped 1,050 tons, or 0.9 percent, to 121,375 tons, according to the exchange's daily report. That's equivalent to less than three days of global consumption.

Codelco, the world's largest copper producer, plans to raise charges paid by metal buyers in Europe to a record, boosting costs for producers of wires and pipes, according to two people with knowledge of the industry.

European consumers will pay between $120 and $125 a metric ton above cash prices on the London Metal Exchange next year, up from a $105 a ton premium now, according to the people, who asked not to be identified because customers have yet to be told. The extra charge includes freight and insurance.

Nickel inventory tracked by the exchange gained most in three weeks. Stockpiles jumped 390 metric tons, or 7.5 percent, to 5,562 tons, the LME said today in a daily report. That's the largest daily gain since Sept. 6.

Nickel for delivery in three months rose $200, or 0.7 percent, to $28,600 a ton.

Aluminum gained $35 to $2,567 a ton, lead rose $8 to $1,397, and zinc added $55 to $3,455 a ton. Tin was unchanged at $9,050 a ton.