Copper Supply Faces Critical Shortage Amid Declining Ore Grades

Copper supply is facing a critical shortage, according to a report by the International Energy Agency (IEA). By 2035, global primary copper supply is projected to be 25% short of demand. This deficit is attributed to declining ore grades and delays in new project development.

The IEA noted that average copper ore grades worldwide have decreased by 40% since 1991. This decline has significantly increased the complexity and cost of projects, with capital intensity for brownfield expansions rising by 65% since 2020.

Greenfield discoveries have slowed dramatically, with only 5% of all copper deposits identified over the past 35 years discovered within the last decade. Project delays, cost overruns, and mine disruptions are also tightening the copper concentrate market.