Copper Prices Soar Amid Growing Demand and Supply Constraints
Copper prices are rising due to growing demand and supply constraints. According to Ivanhoe Mines founder Robert Friedland, global copper production is lagging behind demand, which is driven by the rise of data centres, electric cars, and reindustrialization.
Friedland stated that at current growth rates, the world needs to mine as much copper in 18 years as it has mined in the last 10,000 years. This is not possible with current technology, Friedland said, adding that innovation is needed to find and responsibly mine copper for an energy transition.
The closure of the Strait of Hormuz has also affected copper production, causing a price increase for sulphuric acid used in heap leaching. About 25% of global copper recovery relies on this process. Friedland believes it may be possible to innovate out of this situation through technological advancements.