The demand for copper is rising beyond predicted levels because of its extensive use in renewable energy technologies, electric vehicles, and infrastructure development. According to GlobalData, there are currently more than 709 copper mines in operation worldwide, spanning over 150 countries. In 2023, the ten largest copper mines by production were located in Chile, Peru, Mexico, the Democratic Republic of the Congo, Indonesia, the United States, and Panama.
However, even with those mines, mining companies are struggling to keep up, and need a source of new projects. New exploration projects provide potential for an acquisition to instantly increase their production numbers. For example, Solaris Resources (TSX:SLS) (NYSE:SLSR) and its flagship Warintza project in Ecuador is regarded as one of the best greenfield copper development opportunities. The project already boasts a large 1.5 billion tonne open pit resource, primarily from the Central deposit, one of six discoveries made on the project to date and an updated mineral resource expected in early July taking in an additional two years of drilling. Analysts are expecting the updated resource to be in the range of 2 – 3 billion tonnes when this update is issued. This is one of the last major greenfield districts at low elevation and adjacent to infrastructure supplying renewable hydroelectric grid power in the global copper industry.
As Solaris Resources continues to advance the project with the filing of its Environmental Impact Assessment (EIA) in Q3 2024, Pre-Feasibility Study (PFS) in H2 2025 and an expected fully-permitted, construction ready mine by early 2026, the true value of this world-class asset lies in its potential for major mining companies to develop and add to their numbers.
The Largest Producing Mines in the World
Currently, there are several large copper mines around the world. The Escondida Mine in Antofagasta, Chile, owned by BHP Group, takes the lead with an estimated production of 882.1 thousand tonnes of copper in 2023. The Collahuasi Mine in Tarapaca, Chile, owned by Glencore Plc, follows closely with an estimated production of 563.39 thousand tonnes. The Cerro Verde Mine in Arequipa, Peru, owned by Freeport-McMoRan, ranks third with an estimated production of 444.01 thousand tonnes.
Other major mines include the Buenavista del Cobre Mine in Sonora, Mexico (427.55 thousand tonnes), the Kamoa-Kakula Project in Katanga, Democratic Republic of the Congo (423 thousand tonnes), and the Grasberg Block Cave Mine in Papua, Indonesia (418.53 thousand tonnes). The Antamina Mine in Ancash, Peru, the Morenci Mine in Arizona, United States, the El Teniente Mine in Cachapoal, Chile, and the Cobre Panama Project in Colon, Panama, also contribute significantly to global copper production.
Challenges and the Looming Supply Deficit
Despite the impressive production figures, the copper mining industry faces numerous challenges. Environmental opposition, local community resistance, and regulatory hurdles have delayed the development of several large-scale projects, such as the Pebble project in Alaska and the Resolution copper project in Arizona.
The growing demand for copper, driven by the global shift towards sustainable energy and electrification, is expected to outpace supply in the coming years. Wood Mackenzie estimates that an additional 9.7 million tonnes of new copper supply will be needed over the next decade from projects that have yet to be put into development. This “unattainable gap” between green energy demand and copper supply poses a significant challenge for the industry and the world at large.
The International Energy Agency (IEA) predicts that the demand for copper will double by 2040, driven by the increasing adoption of renewable energy technologies and electric vehicles. The IEA estimates that the renewable energy sector alone will require 3 million tonnes of copper per year by 2040, up from 1 million tonnes in 2020. Additionally, the growing demand for electric vehicles is expected to increase copper consumption by 2.5 million tonnes per year by 2040.
However, the current copper project pipeline is still insufficient to meet this surging demand, even with the biggest producing projects. S&P Global Market Intelligence reports that the number of new copper discoveries has been declining over the past decade, with only 224.3 million tonnes of copper discovered between 2010 and 2019, compared to 962.4 million tonnes between 1990 and 2009.
On top of all of this, the average grade of copper in new discoveries has been declining, making it more challenging and expensive to extract the metal. The average copper grade in new discoveries fell from 0.80% in the 1990s to 0.51% in the 2010s, according to S&P Global Market Intelligence.
The Importance of New Projects
To address the impending supply deficit, the development of new copper projects is one of the ways the industry might balance the supply. The top 10 largest undeveloped copper projects, as compiled by Mining Intelligence, hold the key to bridging the gap between demand and supply.
The Pebble project in Alaska, despite its controversies, remains the largest undeveloped copper project with 37.18 million tonnes of contained copper. The Resolution copper project in Arizona follows with 27.27 million tonnes, while the Kerr-Sulphurets Mitchell (KSM) project in British Columbia, Canada, holds nearly 25 million tonnes.
Other notable undeveloped projects include the Reko Diq deposit in Pakistan (50% owned by Barrick Gold), The Warintza Project in Ecuador (owned by Solaris Resources), La Granja in Peru (owned by Rio Tinto), El Arco in Mexico (Southern Copper), Hu’u Onto in Indonesia (Vale and ANTAM joint venture), Nueva Union in Chile (Teck and Newmont joint venture), El Pachon in Argentina (Glencore), and Tampakan in the Philippines (Sagittarius Mines).
The global copper mining industry supplies the world with this metal we use in so many important applications, but it is struggling to keep up. While current production levels are impressive, the industry faces challenges in meeting the growing demand driven by the green energy transition. The development of new copper projects will be needed, and rapidly, to close the supply deficit and ensure a sustainable future.
TORONTO – A 21-year-old man is dead after what police are describing as an “interaction” with officers during the execution of a search warrant in Toronto.
York Regional Police say their officers were executing a search warrant in the area of Evans Avenue and Sherway Gardens Road at approximately 5 a.m. Monday.
Police say officers had an “interaction” with a man.
They say a 21-year-old man suffered life-threatening injuries and was taken to hospital.
Police say the man was pronounced dead there.
Ontario’s Special Investigations Unit is investigating.
The watchdog agency investigates the conduct of police officers that may have resulted in death, serious injury, sexual assault and/or discharge of a firearm at a person.
This report by The Canadian Press was first published Sept. 16, 2024.
The head of a group that helps homeless people in Saint John, N.B., says it is mourning the death of a 58-year-old man whose body was found in an encampment over the weekend.
Johanne McCullough of Street Team Saint John says John Surette was known for his kindness and for taking care of people around him.
The Saint John Police Force say Surette’s body was found in a tent near Paradise Row in the north end of the city Saturday morning.
Investigators say the circumstances of the death are not considered criminal in nature and an autopsy has been scheduled.
Surrette was found not far from where three people died last winter in two separate tent fires.
McCullough says the community will remember Surrette for his helpfulness and generosity.
This report by The Canadian Press was first published Sept. 16, 2024.
OTTAWA – Liberal House leader Karina Gould lambasted Conservative Leader Pierre Poilievre as a “fraudster” this morning after he said the federal carbon price is going to cause a “nuclear winter.”
Gould was speaking just before the House of Commons is set to reopen following the summer break.
“What I heard yesterday from Mr. Poilievre was so over the top, so irresponsible, so immature, and something that only a fraudster would do,” she said from Parliament Hill.
On Sunday Poilievre said increasing the carbon price will cause a “nuclear winter,” painting a dystopian picture of people starving and freezing because they can’t afford food or heat due the carbon price.
He said the Liberals’ obsession with carbon pricing is “an existential threat to our economy and our way of life.”
The carbon price currently adds about 17.6 cents to every litre of gasoline, but that cost is offset by carbon rebates mailed to Canadians every three months. The Parliamentary Budget Office provided analysis that showed eight in 10 households receive more from the rebates than they pay in carbon pricing, though the office also warned that long-term economic effects could harm jobs and wage growth.
Gould accused Poilievre of ignoring the rebates, and refusing to tell Canadians how he would make life more affordable while battling climate change. The Liberals have also accused the Conservatives of dismissing the expertise of more than 200 economists who wrote a letter earlier this year describing the carbon price as the least expensive, most efficient way to lower emissions.
Poilievre is pushing for the other opposition parties to vote the government down and trigger what he calls a “carbon tax election.”
The recent decision by the NDP to break its political pact with the government makes an early election more likely, but there does not seem to be an interest from either the Bloc Québécois or the NDP to have it happen immediately.
Poilievre intends to bring a non-confidence motion against the government as early as this week but would likely need both the Bloc and NDP to support it.
Gould said she has no “crystal ball” over when or how often Poilievre might try to bring down the government
“I know that the end of the supply and confidence agreement makes things a bit different, but really all it does is returns us to a normal minority parliament,” she said. “And that means that we will work case-by-case, legislation-by-legislation with whichever party wants to work with us. I have already been in touch with all of the House leaders in the opposition parties and my job now is to make Parliament work for Canadians.”
She also insisted the government has listened to the concerns raised by Canadians, and received the message when the Liberals lost a Toronto byelection in June in seat the party had held since 1997.
“We certainly got the message from Toronto-St. Paul’s and have spent the summer reflecting on what that means and are coming back to Parliament, I think, very clearly focused on ensuring that Canadians are at the centre of everything that we do moving forward,” she said.
The Liberals are bracing, however, for the possibility of another blow Monday night, in a tight race to hold a Montreal seat in a byelection there. Voters in LaSalle—Émard—Verdun are casting ballots today to replace former justice minister David Lametti, who was removed from cabinet in 2023 and resigned as an MP in January.
The Conservatives and NDP are also in a tight race in Elmwood-Transcona, a Winnipeg seat that has mostly been held by the NDP over the last several decades.
There are several key bills making their way through the legislative process, including the online harms act and the NDP-endorsed pharmacare bill, which is currently in the Senate.
This report by The Canadian Press was first published Sept. 16, 2024.
