Copper on the verge of recovery
Copper is one of the most important industrial metals and benefits particularly from an economic upswing.
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China has eased or rather dropped its covid restrictions. This is interesting for commodities in that it will probably lead to pent-up demand after a long period of restrictions. In a month or two at the latest, activity should pick up in the Middle Kingdom, resulting in increased copper demand. At the same time, things don't look so rosy on the supply side. The development figures for new copper projects are low, and there have not been as few new copper projects as now for decades. The content of new reserves is dwindling more and more every year. Between 2001 and 2014, for example, about 80 percent of new reserves came from the reclassification of former waste rock, i.e., from lowering the cut-off grade. Whereas in 2001 the reserve grade was 0.80 percent copper, in 2012 it was only 0.26 percent. The quality of the reserves had thus fallen by almost two-thirds. In 2021, the thesis was that reserves could not continue to grow. Copper could therefore become a scarce raw material. Huge sums will therefore have to be invested in the exploration and development of new copper mines.
One of the world's largest copper producers, Codelco recently warned that there could be a shortage of around eight million tons of copper by 2032. This is because new mines will not be able to meet the rising demand. Some experts predict a significant imbalance between copper supply and demand as early as 2026. Renewable energies and electromobility will consume vast quantities of the reddish metal in the coming years. That's when an investment in companies with copper in the ground could be considered.
One successfully producing copper mine is the Copper Mountain Mine in British Columbia, in which Copper Mountain Mining owns 75 percent. Production of currently around 100 million pounds of copper per year is to be increased to 140 million pounds.
Hannan Metals also has copper in the ground. Its San Martin copper-silver project in the Andes in Peru appears extremely promising.
Current corporate information and press releases from Copper Mountain Mining ( https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Hannan Metals (https://www.resource-capital.ch/en/companies/hannan-metals-ltd/).
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