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Released May 05, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Copper prices tumbled in 2022 amid tighter U.S. and Chinese monetary policies and the war in Ukraine, but industry watchers say the trend is about to see a dramatic turnaround. Long-term demand from the global energy transition, for which copper is a key ingredient in everything from solar panels to electric-vehicle batteries, and an overall tightness in supply means prices have nowhere to go but up--especially if even the most optimistic scenarios for global copper production would not be able to meet demand, as some analysts are warning. Industrial Info is tracking more than $40 billion worth of active copper-mining projects across the U.S.
Click on the image at right for a graph detailing active and proposed copper-mining projects across the U.S., by state.
In a recent interview with Mining Weekly, independent consulting geologist Doug Kirwin, who once worked as a geologist on the Oyu Tolgoi (Turquoise Hill) Mine in Mongolia's Gobi Desert, warned of a "huge crisis" in meeting the ever-growing ambitions of the global transition to cleaner energy sources: "There's no way we can supply the amount of copper in the next 10 years to drive the energy transition and 'carbon zero.' It's not going to happen. There's just not enough copper deposits being found or developed."
Oyu Tolgoi has seen plenty of good news recently. Earlier this year, owner Rio Tinto plc (NYSE:RIO) (London, England) settled a long-standing tax-related dispute with the Mongolian government that allowed it to resume a major expansion. But even with Oyu Tolgoi set to boost production, the world will be short about 6 million tons of copper by 2030, according to analysts at Wood Mackenzie cited by Mining Weekly.
Kirwin and Wood Mackenzie's observations were echoed by executives who attended the annual conference of the Colorado Mining Association (CMA) this February in Denver. Participants cited a long list of headwinds facing copper miners, including a shortage of skilled labor, the rising trend of resource nationalism, and ESG concerns among investors, and long lead times in bringing new mines into service. For more information, see March 3, 2023, article - Copper Market Oversupplied Now, but a New Surge in Demand is Coming.
These problems are particularly pronounced in the U.S., where developers continue to face roadblocks in constructing new mines. Rio Tinto, in a joint venture with Talon Metals Corporation (TSX:TLO) (British Virgin Islands), is pursuing the only grassroot copper-mining project in the U.S.: the proposed Tamarack Nickel-Copper Project in Aitkin County, Minnesota, which is designed to produce 124,100 tons per year of nickel and 24,600 tons per year of copper concentrate over a nine-year mine life. The companies also are considering a carbon-capture pilot plant to convert 100 tons per year of carbon dioxide (CO2) into solid matter that would be safely stored underground.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on the Tamarack mine and its carbon-capture unit.
In a recent earnings-related conference call covering full-year 2022, Peter Cunningham, the chief financial officer of Rio Tinto, noted that copper prices trended downward last year, as a wave of uncertainty hampered the global economy and China's "zero-COVID" policy weighed on demand prospects. But he also noted the expansion at Oyu Tolgoi will double the mine's volumes of copper and gold. Executives say the entire company's copper production will reach between 650,000 and 710,000 tons this year, increasing to about 1 million tons when Oyu Tolgoi reaches full capacity. Subscribers can learn more about Oyu Tolgoi in a detailed project report and plant profile.
"We have an ambition to double annual copper out by end of the decade and have an interest in two of the top five copper assets globally by 2030, according to Wood Mackenzie," said Bold Baatar, the chief executive of copper mining for Rio Tinto, in the conference call. "With the energy transition in the U.S., and the U.S. being short on copper cathode, we are well placed to provide U.S. domestic supply."
Baatar also pointed to brownfield expansion projects across Rio Tinto's portfolio, including subsidiary Kennecott Utah Copper LLC's Phase II extension and upgrades at its copper mine in Bingham Canyon, Utah. The company aims to extend the 400,000-ton-per-year mine's life from 2027 to 2032 by pushing back and deepening its southern wall into a new ore area, along with a series of upgrades and revamps. The project is expected to deliver an additional 1 million tons of refined copper by 2032. Subscribers can learn more from Industrial Info's project report.
Other companies expanding their existing copper mines include Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona), which is targeting one of the most prosperous U.S. destinations for copper miners: eastern Arizona. The company is wrapping up a $300 million expansion and optimization of its mine in Morenci, Arizona, which had the largest output of any U.S.-based copper mine in 2021. Freeport aims to support a planned 10% production increase by debottlenecking the milling operation and restarting one of the concentrator units, among other measures. Subscribers can learn more from Industrial Info's project report.
Later this year, Nevada Copper Corporation (TSX:NCU) (Vancouver, British Columbia) expects to finish construction on its $95 million restart of the Pumpkin Hollow copper mine and concentrator in Yerington, Nevada, which was curtailed in June 2022 due to funding and operational issues. Nevada Copper is focusing on building the facility's stope ore inventory and debottlenecking operations. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active copper-mining projects across the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active and proposed copper-mining projects across the U.S., by state.In a recent interview with Mining Weekly, independent consulting geologist Doug Kirwin, who once worked as a geologist on the Oyu Tolgoi (Turquoise Hill) Mine in Mongolia's Gobi Desert, warned of a "huge crisis" in meeting the ever-growing ambitions of the global transition to cleaner energy sources: "There's no way we can supply the amount of copper in the next 10 years to drive the energy transition and 'carbon zero.' It's not going to happen. There's just not enough copper deposits being found or developed."
Oyu Tolgoi has seen plenty of good news recently. Earlier this year, owner Rio Tinto plc (NYSE:RIO) (London, England) settled a long-standing tax-related dispute with the Mongolian government that allowed it to resume a major expansion. But even with Oyu Tolgoi set to boost production, the world will be short about 6 million tons of copper by 2030, according to analysts at Wood Mackenzie cited by Mining Weekly.
Kirwin and Wood Mackenzie's observations were echoed by executives who attended the annual conference of the Colorado Mining Association (CMA) this February in Denver. Participants cited a long list of headwinds facing copper miners, including a shortage of skilled labor, the rising trend of resource nationalism, and ESG concerns among investors, and long lead times in bringing new mines into service. For more information, see March 3, 2023, article - Copper Market Oversupplied Now, but a New Surge in Demand is Coming.
These problems are particularly pronounced in the U.S., where developers continue to face roadblocks in constructing new mines. Rio Tinto, in a joint venture with Talon Metals Corporation (TSX:TLO) (British Virgin Islands), is pursuing the only grassroot copper-mining project in the U.S.: the proposed Tamarack Nickel-Copper Project in Aitkin County, Minnesota, which is designed to produce 124,100 tons per year of nickel and 24,600 tons per year of copper concentrate over a nine-year mine life. The companies also are considering a carbon-capture pilot plant to convert 100 tons per year of carbon dioxide (CO2) into solid matter that would be safely stored underground.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on the Tamarack mine and its carbon-capture unit.
In a recent earnings-related conference call covering full-year 2022, Peter Cunningham, the chief financial officer of Rio Tinto, noted that copper prices trended downward last year, as a wave of uncertainty hampered the global economy and China's "zero-COVID" policy weighed on demand prospects. But he also noted the expansion at Oyu Tolgoi will double the mine's volumes of copper and gold. Executives say the entire company's copper production will reach between 650,000 and 710,000 tons this year, increasing to about 1 million tons when Oyu Tolgoi reaches full capacity. Subscribers can learn more about Oyu Tolgoi in a detailed project report and plant profile.
"We have an ambition to double annual copper out by end of the decade and have an interest in two of the top five copper assets globally by 2030, according to Wood Mackenzie," said Bold Baatar, the chief executive of copper mining for Rio Tinto, in the conference call. "With the energy transition in the U.S., and the U.S. being short on copper cathode, we are well placed to provide U.S. domestic supply."
Baatar also pointed to brownfield expansion projects across Rio Tinto's portfolio, including subsidiary Kennecott Utah Copper LLC's Phase II extension and upgrades at its copper mine in Bingham Canyon, Utah. The company aims to extend the 400,000-ton-per-year mine's life from 2027 to 2032 by pushing back and deepening its southern wall into a new ore area, along with a series of upgrades and revamps. The project is expected to deliver an additional 1 million tons of refined copper by 2032. Subscribers can learn more from Industrial Info's project report.
Other companies expanding their existing copper mines include Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona), which is targeting one of the most prosperous U.S. destinations for copper miners: eastern Arizona. The company is wrapping up a $300 million expansion and optimization of its mine in Morenci, Arizona, which had the largest output of any U.S.-based copper mine in 2021. Freeport aims to support a planned 10% production increase by debottlenecking the milling operation and restarting one of the concentrator units, among other measures. Subscribers can learn more from Industrial Info's project report.
Later this year, Nevada Copper Corporation (TSX:NCU) (Vancouver, British Columbia) expects to finish construction on its $95 million restart of the Pumpkin Hollow copper mine and concentrator in Yerington, Nevada, which was curtailed in June 2022 due to funding and operational issues. Nevada Copper is focusing on building the facility's stope ore inventory and debottlenecking operations. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active copper-mining projects across the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
