IEA Warns of Copper Supply Crunch by 2035

According to a report by the International Energy Agency (IEA), the global primary copper supply may face a significant challenge in the coming years. The agency predicts that despite record prices, there could be a 25 per cent deficit by 2035 due to inadequate new project development.

The IEA cites declining copper ore grades as 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.

Furthermore, the agency notes that new copper discoveries have slowed significantly, with only 5 per cent of all copper deposits discovered over the past 35 years being found in the last decade. This is a major concern for supply security, as it suggests that existing mines may not be able to meet demand.