New Delhi [India], 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 (IEA).
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.
Source: ANI News
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