{"id":2898,"date":"2022-04-04T13:00:10","date_gmt":"2022-04-04T11:00:10","guid":{"rendered":"https:\/\/a2kadvisory.com\/?p=2898"},"modified":"2022-04-04T13:36:58","modified_gmt":"2022-04-04T11:36:58","slug":"miners-need-to-invest-over-100-billion-to-meet-copper-demand","status":"publish","type":"post","link":"https:\/\/a2kadvisory.com\/fr\/2022\/04\/04\/miners-need-to-invest-over-100-billion-to-meet-copper-demand\/","title":{"rendered":"Miners need to invest over $100 billion to meet copper demand"},"content":{"rendered":"
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The world needs eight projects the size Escondida in Chile, the world\u2019s largest copper mine, in the next eight years. (Image of Escondida courtesy of\u00a0BHP.<\/a><\/em>)<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The global copper industry needs to spend\u00a0more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030, Erik Heimlich, head of base metals supply at CRU said this week.<\/p>

\"\"Speaking at the 2022 CRU World Copper Conference held in Santiago, Chile, the analyst said the supply gap for the next decade is estimated at six million tonnes per year, as the clean energy and electric vehicles sectors ramp up.<\/div><\/div><\/div><\/div><\/div><\/div><\/div>

This means the world would need to build eight projects the size of BHP\u2019s (ASX: BHP) Escondida in Chile, the world\u2019s largest copper mine, over the next eight years. Such task, Heimlich said, seems questionable \u2013 \u201cpossible\u201d rather than \u201cprobable\u201d, given the bigger scale developments required and the fact that about half the projects in the pipeline are greenfield.<\/p>

\u201cHistorically, the completion rates of these projects have been low. A large share of the greenfield possible projects in 2012 remain under-developed so there are questions about the ability to respond to the supply gap in an efficient and timely manner,\u201d he said, as\u00a0reported by Mining Journal<\/a>.<\/p>

Some major copper mines have come online in the last three years. First Quatum\u2019s (TSX: FM) Cobre Panama achieved commercial production in\u00a0September 2019. The asset is\u00a0estimated to hold 3.1 billion tonnes in proven and probable reserves<\/a>\u00a0and at full capacity can produce more than 300,000 tonnes of copper per year.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Cobre Panama copper mine. (Image courtesy of\u00a0First Quantum.<\/a><\/em>)<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Ivanhoe Mines (TSX: IVN), began copper concentrate production\u00a0at its\u00a0Kamoa-Kakula project in the DRC in May last year<\/a>, achieving commercial production in July.<\/p>

Anglo American (LON: AAL)\u00a0mined first ore at its Quellaveco mine<\/a>, located in\u00a0the Moquegua region of Peru, in October 2021. The asset is expected to reach commercial production by mid-2022, generating between 120,000 and 160,000 tonnes of copper this year, and 300,000 tonnes annually for the first 10 years at full production.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Pipeline of hopes<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While copper projects are in the pipeline, producers are wary of repeating oversupply mistakes of past cycles by speeding up plans at a time when mines are getting a lot trickier and pricier to build.<\/p>

Prices for the metal have traded around decade highs, though they\u00a0fell on Thursday\u00a0<\/a>to $10,410 a tonne due to concerns over demand in top consumer China, which is grappling with the worst resurgence of covid-19 cases since early 2020.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Quellaveco copper mine. (Image courtesy of\u00a0Anglo American | Flickr.<\/a><\/em>)<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Bank of America (BofA) Global Research\u2019s\u00a0latest report<\/a>\u00a0backs CRU\u2019s forecast. According to the bank\u2019s analysts, visibility over the near-term copper project pipeline is good, but activity increases will \u201ccome with a wrinkle\u201d.<\/p>

\u201cMany of the projects currently developed have been in the making for almost three decades, and with exploration activity relatively limited in recent years, supply increases may fade from 2025,\u201d the experts said.<\/p>

A lump of next decade\u2019s new supply will potentially come from the Reko Diq deposit in Pakistan, as Barrick Gold (TSX: ABX) (NYSE: GOLD)\u00a0reached a deal last week<\/a>\u00a0that ended long-running dispute with the country\u2019s government.<\/p>

Alcantara Group\u2019s\u00a0Tampakan\u00a0project in the Philippines is also expected to contribute closing the global supply gap and so is\u00a0Seabridge Gold\u2019s KSM project<\/a>\u00a0in British Columbia, Canada.<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The world\u2019s top 10 copper mining projects in 2022. (Source:\u00a0Mining Intelligence.<\/a><\/em>)<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Rio Tinto (ASX, LON: RIO) is developing a $6.93 billion underground expansion\u00a0of the giant Oyu Tolgoi copper-gold mine in Mongolia, which has been plagued by\u00a0delays and costs overruns<\/a>. First production has been deferred several times and it is now expected in the first half of 2023.<\/p>

The market is also following closely what SolGold\u00a0(TSX, LON: SOLG) is doing with its Alpala copper-gold project at the Cascabel property in Ecuador.<\/p>

The company has yet to publish a pre-feasibility study (PFS)\u00a0for the project, but it says that once developed, it would produce an average of 150,000 tonnes of copper, 245,000 ounces of gold and 913,000 ounces of silver in concentrate per year during its 55-year life-of-mine.\u00a0<\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source : mining.com<\/a><\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

The global copper industry needs to spend more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030, Erik Heimlich, head of base metals supply at CRU said this week.<\/p>","protected":false},"author":1,"featured_media":2900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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Miners need to invest over $100 billion to meet copper demand<\/a><\/blockquote>