Copper for the future
Copper is important for national and homeland security. Copper companies profit from a supply risk.
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Events such as the war in Ukraine may drive supply risk of the reddish metal. Two congressmen, one from New York and one from Ohio, are calling for copper's status as a critical metal to be considered. Similarly, the Copper Development Association is calling on the U.S. government to classify copper as a vital mineral. The U.S. list of critical minerals is updated every three years and includes nickel, lithium or zinc, raw materials for the production of electric vehicles. Although an update is not due until 2025 again, the senators are calling for this time to be skipped and for copper to be added to the list. The background is surely warnings from the largest copper companies and from metal traders that a copper shortage could develop. This would slow growth and be an obstacle to international climate goals.
It is also always worth taking a look at China, a major copper consumer. In 2020, China's consumption of refined copper totaled around 60 percent of the global market. China's copper imports were robust last year, despite lockdowns. A further recovery in demand could be expected. This is because, on the one hand, the Chinese government is likely to support the ailing real estate market, and the construction industry is one of the important sectors that need copper. So, China's economic development is an important factor for the price development of the metal. In terms of consumer sentiment, there has been a significant recovery compared to the pandemic years. This can also be seen from the purchasing managers' index for the service sector (January). In addition, the unrest in Peru is likely to reduce supply. So if you want to bet on copper, you should take a look at companies like Aurania Resources or Golden Rim Resources.
Aurania Resources (gold and copper) is active in South America with a particular focus on the exciting The Lost Cities project in the Andes Mountains.
Golden Rim Resources has properties in Chile and Guinea, such as the flagship Kada project (gold). The projects contain gold, silver, copper, zinc and lead.
Current corporate information and press releases from Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ ).
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