VANCOUVER (miningweekly.com) – London-based base metals company Antofagasta said on Wednesday it expects a shortfall of copper to emerge because of the slow rate at which new mines are permitted and built.
Antofagasta chairperson Jean-Paul Luksic said at the company's annual general meeting that the emergence of new sources of copper demand, such as electric vehicles that use significantly more copper than established technologies, points to possible further demand growth in the medium- to long-term, while the traditional markets in China and other emerging economies will remain the most important drivers for copper in the shorter term.
Luksic pointed out that it remains less clear as to where the source of increased supply to satisfy this demand will come from, with only one major greenfield site under construction and no others having been committed to for several years.
“Considering a medium-sized mine can take two to three years to build and even longer to permit, this suggests a shortfall can be expected, and the longer term looks positive as well,” he stated.