No metal is more important to the energy transition than copper. Over the coming decades, the global economy will demand unprecedented production of mined copper. The energy transition’s share of total copper demand is forecast to far exceed growth by traditional economic drivers, such as construction.
According to the International Copper Study Group, the copper market is expected to enter and remain in a deficit position as the global energy transition continues to accelerates. According to Wood Mackenzie, 9.7 Mil tonnes of new copper supply, ‘from projects that have yet to be sanctioned’, will be needed over the next 10 years to meet global demand.
“To meet zero-carbon targets, the mining industry would have to deliver new projects at a frequency and consistent level of financing never previously accomplished” – Wood Mackenzie (2022). This pathway would require the equivalent of placing one new Escondida Mine into production every year and require in excess of US$23 billion of investment in new copper projects each year.
