Chinese SOEs Frenziedly Acquire Copper Assets Amid Global Supply Crunch

Chinese state-owned enterprises (SOEs) are accelerating their global expansion of copper resources. One recent example is Celsius Resources, an Australian-listed company that has signed a share sale agreement with Chinalco's Xiong'an Mining to sell its 95% stake in the Opuwo Copper-Cobalt Project in Namibia for $15 million.

The deal aims to concentrate Celsius Resources' resources on copper-gold assets in the Philippines, rather than holding onto the African project. Chinalco has committed to investing at least $750,000 in exploration and $250,000 in metallurgical tests during the transaction period.

Relevant data shows that global shallow high-grade copper ore is depleted, and investment in copper exploration has been lacking for 30 consecutive years. It takes an average of 17-18 years from discovery to commissioning, with existing mine grades declining from 1% in 1991 to the current 0.6%. The shutdown of old mines is accelerating, leading to a scarcity of incremental supply.

The global copper demand is projected to rise to 42 million tons by 2040, exceeding existing production capacity.