Aaron and Alex discuss why they believe global copper supply will likely fall drastically short of demand in the future. The rise of electric vehicles, renewable energy technologies, and numerous infrastructure plans worldwide are all expected to increase copper demand dramatically. And with the long lead time to bring on new copper mines, supply seems unlikely to keep up.
CNBC’s ‘There isn’t enough copper in the world — and the shortage could last till 2030′, highlights the somewhat questionable South American sources of copper.
Alex has visited Peru twice and Chile once in recent years to see mines and copper projects firsthand. He tells one story about the violence and protests surrounding the mining sector that can sometimes spill into city streets.
“A copper deficit is set to inundate global markets throughout 2023, fueled by increasingly challenged South American supply streams and higher demand pressures.”
If significant deficits are around the corner, the price of copper may be poised for a revaluation. Additionally, as Chile, the world’s largest copper producer, records stagnant year-on-year production levels over the last half decade or so, the world will likely have to look elsewhere for growth.
Copper development companies and those close to production may be well positioned in the years ahead.
Enjoy the pod!