Lithium

Excitement around lithium is booming at the moment with the future of electric vehicles nearly upon us. Lithium is the key element used in lithium-ion batteries, usually found in mobile phones and laptops. However while a laptop battery needs 30g of lithium, an electric car needs at least 10kg, creating a massive demand for the element. The world’s largest reserves of lithium are found in Latin America; the ‘lithium triangle’ made up of Chile, Bolivia and Argentina owns 85% of known global reserves between them.

Copper

Lithium isn’t the only resource market that will be revolutionised by the electric car revolution – 140 million EVs on the road could boost copper demand to 11 million tonnes, which is 30% more than current demand. Chile and Peru, two of the world’s largest copper producers, will face added pressure to increase production to keep up with rising demand. Currently the world’s largest copper mine is Escondida in the Atacama desert of Chile, which makes up 5% of total global copper production on its own. However with the high cost of mining and refining copper, recycling scrap copper may be a way to make up the supply deficit, especially since the metal has a lifetime of 100+ years due to its anti-corrosive qualities.

Gold

2011 was the year of $2000/per ounce gold prices due to renewed faith in this historically stable investment asset following the global recession of 2008. While the high has dropped in recent years and prices are currently hovering around the $1300 mark, many analysts predict that gold prices will rise due to various factors such as a weak USD, higher demand for gold ETFs and ongoing central bank buying, among others. As the 6th largest producer of gold in the world, Peru in particular would cash in on this.

Silver

Though it’s less talked about in mainstream media, the outlook for silver in 2018 is good as investors rush to buy the precious metal, a strong sign that a bullish period is on the horizon. Unlike gold, over 50% of mined silver is used for industrial purposes, particularly in smartphones and solar technology, two industries with fast-growing demand. Long term positive trends for silver have also pegged it as a good investment asset. Any supply-side issues with major silver producers such as Mexico, Peru and Chile (all in the top 5 global producers of the metal) could cause silver prices to soar.

Zinc

In 2016 and 2017 Zinc grew to a decade high of $3000+ per metric ton due to the depletion of zinc stocks over the past 10 years from mine closures and cutbacks. The metal, most commonly used to coat steel in the automotive and construction industries, is generally experiencing an increasing demand particularly from developing economies. This deficit between supply and demand is expected to contribute to rising prices in 2018. Peru, the world’s 2nd largest producer of zinc, is expected to increase output in the next few years.

Industry experts including mining company senior execs and global investors will be examining commodity growth prospects live at Mining Cumbre, taking place 10-11 July 2018 in Santiago, Chile.

Book a place now with Mining Weekly’s 15% discount code: CREAMER15 https://goo.gl/yWY5Tr