Electrification requires a lot of copper
The world is becoming increasingly electrified, and this is boosting copper consumption. Many of the large copper mines currently in production are already decades old and are therefore close to the end of their production. More copper is needed, but it is not easy to increase the supply of copper. It takes many years, often 15 to 20 years, before a large copper mine is approved. The Corona pandemic will be brought under control. Then an economic recovery can be expected, with it a strong demand for copper. One of the main demanders is, of course, China.
Since the end of February, the copper price has been on a consolidation path. And with economic growth picking up, most analysts also see copper prices rising, often more than US$10,000 per ton. This is because the factors of electrification and electric cars are being joined by the increasing reduction in fossil fuels. This is because it adds the climate-friendly energy generation sectors such as wind power and solar energy, which also need copper.
Another driving moment is inventories, which are rather modest because they are below average. And due to the pandemic, growth in mine production will also lag behind. The leaders in copper production are Chile and Peru.
In Chile, for example, Torq Resources - https://www.youtube.com/watch?v=okKpAaMW7iM - is present with its Margarita iron-oxide-copper-gold project (1,045 hectares of land). Neighboring projects with first-class resources are available, and the infrastructure is also excellent. The first drilling program is scheduled to start in the third quarter of 2021.
Hannan Metals - https://www.youtube.com/watch?v=lb1XVw3cAWg - is located in Peru with its San Martin copper-silver project. Also equipped with the best infrastructure, the San Martin property is a newly identified high-grade copper-silver system.
Current corporate information and press releases from Torq Resources (https://www.resource-capital.ch/en/companies/torq-resources-inc/) and Hannan Metals (https://www.resource-capital.ch/en/companies/hannan-metals-ltd/).
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