IEA Warns of 25% Copper Supply Deficit by 2035

Global copper supply is facing a significant challenge as it may experience a 25% deficit by 2035, despite record-high prices. The International Energy Agency (IEA) has noted that the pace of new project development remains inadequate to meet growing demand.

Copper is one of the most strategically important metals, widely used in various sectors such as energy, transport, construction, data centers, and defense. However, declining copper ore grades have increased project complexity and capital costs.

The average grade of copper mines worldwide has fallen by 40% since 1991, making it difficult to expand supply. Additionally, new copper discoveries have slowed significantly, with only 5% of all copper deposits discovered over the past 35 years found in the last decade.

The IEA also highlighted delays and cost overruns in several major copper projects, leading to a tighter copper concentrate market and concerns over supply security. On the near-term outlook, limited availability of sulphuric acid has emerged as a major risk to solvent extraction-electrowinning (SX-EW) copper production.

The IEA stressed that bringing new mining projects online remains a major challenge despite strong demand prospects. It noted that global primary copper supply could face a 25% deficit in 2035 under current policy settings.