Energy transition drives demand for copper

Chile produces the most copper, followed by Peru. Last year, around five million tons of copper came from Chile’s mines. With a total global production of around 22 million tons of copper, Chile produces around a quarter of the global volume. An estimated 190 million tons of copper reserves are said to lie dormant in Chile. Peru has significantly less. Copper is used for construction, electrical installations, communication systems, cabling and corrosion protection technology. The expansion of power grids, transportation, the solar and wind energy sector and electromobility in particular devour the reddish metal. Energy storage in the form of batteries is becoming increasingly common, not only in electric vehicles and in the production of renewable energies, but also in many portable devices. According to estimates, around 30 million tons of copper will be needed in 2035, compared to just 25 million tons in 2022.

New mines would be needed, but it takes many years from a new copper discovery to production. The approval procedures have not become any easier either, quite the opposite. Experts are already predicting a copper deficit in 2030, for example Bloomberg NEF. And industry giants are already attempting or carrying out expensive takeovers. Strikes, such as the current one at the world’s largest copper mine in Chile, are also often causing supply shortages. Due to the rise in copper prices, the workers there want a share of the profits. Companies that also have copper in their projects, such as Meridian Mining or Collective Mining, should therefore be in a good position.

Meridian Mining – https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ – owns the Cabaçal (copper, gold, silver) and Santa Helena (copper, gold, silver and zinc) mines in Brazil. The drilling program is running successfully.

Collective Mining – https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ – is working on projects in Colombia. The raw materials are copper, silver, gold and tungsten. Guayabales is the flagship project.

Current company information and press releases from Collective Mining (- https://www.resource-capital.ch/en/companies/collective-mining-ltd/ -) and Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -)

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