Rio Tinto has said that the shortfall in copper will be further widened due to the decision by BHP Billiton to cancel its a $30 billion plan for the expansion of the Olympic Dam copper and uranium mine.

Rio Tinto's head of copper division said Andrew Harding indicated that the decision by BHP Billiton to scrap the project with make other facilities more attractive to businesses. Many believe that Rio Tinto might consider investing in the second stage of its huge Oyu Tolgoi copper and god mine in Mongolia.

The price of the bulk commodity fell below $ 100 per tonne today and it is expected to fall below the $80 per tone. The fall was mainly due to the decrease in benchmark iron ore prices. The price of iron ore is at its lowest level since December 2009 making it difficult for the ASX listed companies that offer the product in global markets.

“Global growth in supply of copper is still challenged. People are still struggling to meet their production targets,” said Harding. However, it pointed out that the longer term copper outlook remains positive.