Copper supply may face 25 pc deficit by 2035 despite record prices: IEA
New Delhi, July 27
Global primary copper supply could face a 25 per cent deficit by 2035 despite copper prices reaching record highs, as the pace of new project development remains inadequate, according to a report by the International Energy Agency.
The report said copper is one of the most strategically important metals and is widely used across sectors such as energy, transport, construction, data centres and defence.
However, the IEA noted that bringing new mining projects online remains a major challenge despite strong demand prospects.
"Based on the project pipeline, global primary copper supply could face a 25 per cent deficit in 2035 under today's policy settings," it noted.
According to the report, declining copper ore grades are one of the key obstacles to expanding supply. The average grade of copper mines worldwide has fallen by 40 per cent since 1991, increasing project complexity and capital costs.
"The average capital intensity for expanding existing projects (brownfield) has also increased by 65% since 2020, approaching levels typically associated with new greenfield projects," the report said.
The IEA added that new copper discoveries have slowed significantly. It said only 5 per cent of all copper deposits discovered over the past 35 years were found in the last decade.
The report also highlighted delays and cost overruns in several major copper projects, leading to a tighter copper concentrate market and raising concerns over supply security.
On the near-term outlook, the IEA said limited availability of sulphuric acid has emerged as a major risk to solvent extraction-electrowinning (SX-EW) copper production.
"Coupled with slower-than-expected recoveries from disruptions at major mines and an already tight market, the copper market faces a strong set of near-term challenges," it said.
— ANI
Reader Comments
Interesting. The IEA report highlights declining ore grades - 40% drop since 1991. This explains why copper prices are skyrocketing. But I wonder about recycling. India can become a hub for copper scrap processing. Circular economy is the way forward! 🔄
Record prices but no new mines? Something doesn't add up. Governments need to fast-track approvals for strategic minerals. India's own copper production is minimal; we depend on Chile and Peru. This is a national security issue for our renewable energy goals. 🧐
Sulphuric acid shortage affecting SX-EW copper production? That's a new angle. Our fertilizer industry might face competition for acid supplies. Everything is connected nowadays. The IEA should also look at deep-sea mining as an alternative. 🌊
I agree with the concern but respectfully, the IEA's projections often assume no technological breakthroughs. What about copper substitutes like aluminum composites or new battery chemistries? Prices will eventually drive innovation. India's startups should focus here. 💡
My father worked in Hindustan Copper for 30 years. He always said India has reserves but extraction costs are high. With record prices, maybe it's time to reopen closed mines. But we need proper rehabilitation plans for affected communities. Balance is key. 🌿
J