Seeing the current situation, I strongly believe that the demand for copper will just keep on rising, so the prices will also rise unless we find more copper or some other economic alternative.
This brings me to the question about the possibility of the supply to meet the demand. Copper is important for the production of electronic devices and of renewable sources of energy. To add to that, it is also important for everything that’s electric, manufacturing batteries, and even for solar panels. There is a high demand for it and it is unlikely that it will go down soon.
There are a lot of big mining companies that are producing massive amounts of copper such as Codelco. Just last year, Codelco was the largest producer of copper, producing 1.73 million tonnes, which was 1.3% higher than their last year’s performance. BHP, which owns the world’s largest copper mine, comes in second producing 1.77 million tonnes.
A lot of smaller companies are joining as well too, and are in for producing tons of the metal too as shown by their drilling results. I believe that these smaller and new companies will contribute greatly to the copper supply boost, which will also help ease the situation of the rising prices.
Among them is Three Valley Copper (TVC.V), a Canadian company producing pure copper cathodes from its mineral reserves. They recently released their second-quarter results, where they announced that they were able to mine 178,105 tonnes of ore from Don Gabriel. The company expects high unit costs throughout the year until next year since they are aiming to operate below capacity. There are also explorations that are showing potential like Wedgemount Resources who recently found new mineralized zones. Both senior and junior mining companies are striving hard to keep up with the demand for the metal.
As years go by, I believe copper is going to be really critical and will be a mainstay in a lot of industries. I know that a lot of companies are striving to meet the demand for this metal, but if it does not match the rate of the increase on demand for copper, the supply will likely be short and the prices will continue to increase.
Submitted September 10, 2021 at 06:48AM by JonDyna965 https://ift.tt/3lgjss9
