"Over 25% of Global Copper Supply Trapped by ESG Roadblocks \u2014 Study"

" Over 25% of Global Copper Supply Trapped by ESG Roadblocks \u2014 Study \r\n\r\nAbout 6.4 million tonnes of copper production capacity, equal to more than 25% of global mine output, is stalled or suspended due to environmental, social, and governance (ESG) issues, a new study shows. \r\n\r\nThese bottlenecks, unlike geological or technical barriers, stem from conflicts that could be resolved through stronger governance, deeper community engagement, and more sustainable practices, according to analysts at GEM Mining Consulting. The findings come as demand for copper continues to surge, driven by electrification, renewable energy growth, and the digital economy.\r\n\r\nCountries including Chile, Peru and the United States hold some of the largest copper reserves now off the market. Unlocking even a fraction of these projects could ease looming supply shortages during the energy transition, Patricio Fa\u00fandez, head of economics at GEM, says.\r\n Source:\u00a0 GEM Mining Consulting. \u00a0(Research based on various public sources). \r\nPeru accounts for the largest share of untapped copper, roughly 31% or 1.8 million tonnes annually, followed by the US with 0.8 million tonnes, Chile with 0.7 million tonnes, and Argentina and Papua New Guinea (PNG) with about 0.6 million tonnes each.\r\n\r\nPeru\u2019s halted output nearly matches its current annual production. If released, the country could reclaim its position as the world\u2019s second-largest copper producer, surpassing the Democratic Republic of Congo with more than 4 million tonnes per year, the study notes.\r\n Source:\u00a0 GEM Mining Consulting. \u00a0(Research based on various public sources). \r\nIn the US, restarting suspended projects could narrow the gap between domestic production and rising consumption, strengthening supply security and reducing import dependence.\r\n\r\nIn Chile, the stalled copper could finally break a decades-long production ceiling of around 5.5 million tonnes per year, pushing output beyond 6 million tonnes and reinforcing the country\u2019s leadership in global supply.\r\n Three telling cases \r\nAmong the 33 projects paralyzed by ESG factors, three stand out:\u00a0 La Granja \u00a0in Peru,\u00a0 Resolution Copper \u00a0in the US, and El Pach\u00f3n in Argentina.\r\n\r\nLa Granja, owned by Rio Tinto (ASX: RIO) and First Quantum Minerals (TSX: FM), has faced\u00a0 some headwinds \u00a0over alleged contamination and land use since 2006. Despite regulatory approvals, the project \u2014 ranked as \u00a0the world\u2019s fifth-largest copper deposit \u00a0\u2014 remains blocked by public distrust.\r\n\r\nIn Arizona,\u00a0 Rio Tinto\u2019s Resolution Copper project \u00a0has been stalled for more than two decades due to Indigenous and environmental opposition over the sacred Oak Flat site, located on federally owned land.\r\n Resolution Copper has faced Indigenous and environmental opposition over the sacred Oak Flat site. ( Image by\u00a0 Wendy Kenin |Flickr Commons. ) \r\nEl Pach\u00f3n in Argentina, held by Glencore (LON: GLEN), has been delayed by glacier-protection rules and permitting hurdles, though\u00a0 new incentives under President Javier Milei\u2019s RIGI regime may revive development.\r\n\r\nGEM\u2019s report does not mention an iconic copper mine that has remained idled since November 2023:\u00a0 First Quantum\u2019s Cobre Panam\u00e1 . Before Panama\u2019s Supreme Court declared the mine\u2019s\u00a0 operating contract unconstitutional \u00a0and forced it to shut down, it ranked among the world\u2019s largest copper producers, yielding 350,000 tonnes in 2022, its final full year of operations.\u00a0The mine contributed about 5% of Panama\u2019s GDP, and First Quantum estimates the suspension has cost the country up to\u00a0 $1.7 billion in lost economic activity .\r\n Perfect storm \r\nPanguna in Papua New Guinea stands as a stark reminder of how ESG concerns,\u00a0 such as water use, biodiversity loss, Indigenous rights, consultation failures and local protests can collide.\r\n\r\nOnce one of the world\u2019s largest copper-gold mines, the mine operated by\u00a0 Rio Tinto\u2019s unit by Bougainville Copper , closed in 1989 after a violent civil conflict over environmental destruction and inequitable profit sharing. More than three decades later, redevelopment remains uncertain.\r\n\r\nWhile some projects may eventually progress, Fa\u00fandez warns that many remain frozen for years, out of sync with surging demand. Rebuilding trust, enforcing higher environmental standards, and stabilizing governance, he said, will be crucial to unlocking the copper needed for the global energy transition."

"Over 25% of Global Copper Supply Trapped by ESG Roadblocks \u2014 Study"

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