The International Energy Agency (IEA) is warning of a looming copper shortage that could have a significant impact on the global energy transition. The agency predicts that by 2030, the world's existing copper mines and projects under development will only be able to meet 80% of the projected demand. This is particularly concerning given that it takes an average of 23 years to open a new copper mine.
The growing demand for copper is being driven by the increasing adoption of renewable energy sources, electric vehicles, and energy storage systems, all of which require significant amounts of red metal. In fact, the IEA is forecasting a twentyfold increase in global demand for copper by 2040.
To address this growing demand, the IEA is recommending a significant increase in new copper mining projects. However, the agency also notes that the long lead times required to bring a new mine into production make it difficult to rapidly respond to supply shortages. The majority of the world's copper is currently produced in Latin America, with Chile and Peru ranking as the top two copper producing countries.
In addition to the need for new mines, the IEA is also calling for a focus on improving the efficiency of the copper supply chain. This includes increasing the recycling of copper and reducing waste in the production and manufacturing processes.
The soaring demand for copper has also been reflected in the metal's price, which has more than doubled over the past two years. Some analysts are now predicting that the price of copper could quadruple in the coming years. Hedge fund manager Pierre Andurand has gone so far as to suggest that copper could hit $40,000 per tonne, while others are predicting that the price could continue to climb as demand outpaces supply.
In response to the growing demand for copper, a number of mining companies are now looking to ramp up their production. For example, Yukon Metals Corp. is making a major push to develop its copper assets in the Yukon. The company recently acquired a portfolio of exploration projects in the region and is now looking to advance the development of these assets.
"Completing the acquisition of these high-quality exploration assets in the Yukon marks an exciting beginning for Yukon Metals," said Rory Quinn, President and CEO of Yukon Metals.
The company is also looking to develop its existing copper assets in other regions. Yukon Metals is not alone in its efforts to expand its copper production. Companies like Rio Tinto, BHP Group, and Southern Copper are also investing in new projects.
In order to meet its long-term production goals, Rio Tinto is looking to develop new copper mines and is also exploring opportunities to expand its existing projects. The company is looking to increase its copper production to one million tonnes per year by 2029.
BHP is also looking to ramp up its copper production in the coming years. The company is in the process of developing the massive Oak Dam copper-gold project in South Australia. BHP has also...
Southern Copper is making a major push to develop its copper reserves in Peru. The company is currently seeking approval for its proposed Tia Maria copper mine.
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