"Codelco sees copper deficit at 8 million tonnes by 2032"

" Codelco sees copper deficit at 8 million tonnes by 2032 \r\n\r\n \r\n \r\n \r\n \r\n \r\n\r\nChile\u2019s state owned mining company Codelco, the world\u2019s biggest copper\u00a0producer, warned on Thursday that global shortages of the metal may reach eight million tonnes by 2032, as soaring demand continues to offset new projects numbers.\r\n \r\nMaximo Pacheco, chairman of the board of Codelco, said at an industry conference that while a surplus is expected in the short term due to new projects in Chile, Peru, the DRC and China\u2019s Tibet region, medium to long-term demand will eclipse supply further down the line.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\u201cConsidering that some copper deposits are in the process of stopping production and that other projects are in the process of starting operations, it is estimated that the deficit will be almost eight million tonnes in 10 years,\u201d Pacheco said at the\u00a0 Asia Copper Week conference \u00a0in Singapore.\r\n\r\nPacheco\u2019s comments echo the view of several analysts, who predict a supply gap for the next decade estimated at six million tonnes per year. They attribute the upcoming deficit to a ramp up in the clean energy and electric vehicles (EV) sectors.\r\n\r\nBased on studies conducted by Codelco, Pacheco said the world\u2019s energy transition to stop climate change will take demand for the orange metal from 25 million tonnes per year to just over 31 million tonnes in 2032.\r\n\r\nThis means the world would need to build eight projects the size of BHP\u2019s (ASX: BHP) Escondida in Chile, the world\u2019s largest copper mine, over the next eight years.\r\n\r\nFor Erik Heimlich, CRU head of base metals supply, such \u201chuge\u201d task seems \u201cpossible\u201d rather than \u201cprobable\u201d, given the bigger scale developments required and the fact that about half the projects in the pipeline are greenfield.\r\n\r\n\u201cHistorically, the completion rates of these projects have been low. A large share of the greenfield possible projects in 2012 remain underdeveloped so there are questions about the ability to respond to the supply gap in an efficient and timely manner,\u201d he said at a copper conference in Chile\u00a0 earlier this year .\r\n $100 billion needed \r\nExperts estimate the copper industry needs to\u00a0 spend\u00a0more than $100 billion \u00a0to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030.\r\n\r\n\u201cIf new mining projects do not come into operation, the imbalance between supply and demand will begin to be noticed during the second half of this decade, in 2026,\u201d Pacheco warned.\r\n\r\nSome major copper mines have come online in the last three years. First Quatum\u2019s (TSX: FM) Cobre Panama achieved commercial production in\u00a0September 2019. The asset is\u00a0 estimated to hold 3.1 billion tonnes in proven and probable reserves \u00a0and at full capacity can produce more than 300,000 tonnes of copper per year.\r\n\r\nIvanhoe Mines (TSX: IVN), began copper concentrate production\u00a0at its\u00a0 Kamoa-Kakula project in the DRC in May last year , achieving commercial production\u00a0 in July 2021 .\r\n\r\nAnglo American (LON: AAL)\u00a0 mined first ore at Quellaveco , located in\u00a0the Moquegua region of Peru, in October 2021, declaring commercial production almost a year later,\u00a0 in September 2022 .\r\n\r\nThe asset is expected to generate between 120,000 and 160,000 tonnes of copper this year, and average 300,000 tonnes annually for the first 10 years at full production.\r\n\r\nThis would make Quellaveco Peru\u2019s biggest new copper mine since MMG\u2019s Las Bambas in 2016.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n "

"Codelco sees copper deficit at 8 million tonnes by 2032"

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