Copper shortage getting real
At AOTH we've been writing about the coming copper supply deficit for years, while mainstream media kept quiet on the issue.
Along with the usual applications, in construction wiring and plumbing, transportation, power transmission and communications, there is the added demand for copper in electric vehicles and renewable energy systems. Chilean state-owned Codelco is also predicting an 8Mt gap, but the world's biggest copper miner thinks it will come a year earlier, in 2032, as soaring demand continues to exceed new mine supply.
The site notes output in Chile is set to fall by 5.8% this year. Codeleco's production declined in the first nine months of 2022 and is expected to fall further this year on worsening ore grades. Globally, the quality of ore is deteriorating, meaning output either slips or more rock has to be processed to produce the same amount.
"I am very long copper," Sobotka said in an interview with the Reuters Global Markets Forum, adding he expects a 10-20% rise in base metal prices this year. Copper inventory right now is less than four days, meaning that combined refined copper stocks in LME, SHFE and bonded Chinese warehouses are only four days worth of global consumption. The indicator is normally measured in weeks.
China's copper buyers face higher costs for the metal this year, buyers and analysts said, after market disruptions from top importer Maike Group's financial woes and production glitches at domestic smelters pushed local premiums to their highest in years. A fresh wave of protests hit Peru's major operations in early 2022, including Glencore's Antapaccay Mine, Southern Copper's Cuajone and MMG's Las Bambas, the country's fourth-largest copper mine and the world's ninth biggest. The demonstrations threaten to block access to almost $4 billion worth of copper.
That year, then-President Joseph Kabila signed an agreement that mandated Chinese companies invest $3.2 billion in a copper-cobalt mine, and another $3 billion in infrastructure funded by the mine's revenue. More than 100 armed groups are active in the region and some of them profit from illegal trade in natural resources, which often transit through neighboring countries, Bloomberg said, quoting Tshisedeki:
It takes seven to 10 years, at minimum, to move a copper mine from discovery to production. In regulation-happy jurisdictions like Canada and the US, the time frame is more like 20 years.Why can't we just mine more copper? Over the past two decades, the big mining companies have approached the problem of dwindling reserves by doing exactly that.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BHP makes copper move in SerbiaDiversified major BHP has struck a deal to hunt for copper in Serbia, where it now has a right to earn into three exploration areas in the Timok region. BHP, which is homing in its strategy around ‘future-facing commodities' such as copper, nickel and potash, will partner with Canadian project generator Mundoro Capital.
Read more »
Evolution Mining increases gold and copper production in December quarterA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »
Aligning with younger employees’ values is key for Canada’s Top Employers for Young People 2023The Globe and Mail offers the most authoritative news in Canada, featuring national and international news
Read more »
After a three-month rally, silver sees profit-taking; is this a signal for gold at resistance levels?Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
Read more »
Australia's Financial Services Minister insists many cryptos are financial products(Kitco News) - Stephen Jones, Australia’s Financial Services Minister, reinforced his earlier statements about regulating cryptocurrencies as financial products in an interview with the Sydney Morning Herald published Monday.
Read more »
This is the next Web3 sector to rally - Alex FilatovAlexander Filatov is Co-Founder and CEO of EverX, developer of the Everscale Network decentralized blockchain. Filatov tells Kitco News anchor David Lin how ...
Read more »