As copper demand surges, mining companies are struggling to keep up and global shortfalls are expected in the coming years, according to analysis.
The study, led by the University of Michigan, found that despite copper prices being at historically high levels, the financial risk involved in mining means that prices will need to go much higher before mining companies see profit in addressing the supply shortage.
Copper’s superior ability to conduct electricity means it is used in a wide range of industries, including telecommunications, electric green energy, vehicle production and data centres. It also plays a critical role in the semiconductor industry, which is tipped to hit $1tn by 2030, primarily as a conductor of electricity within chips.
In the UK alone, demand for copper is set to almost double by 2035. Last year, the International Energy Agency (IEA) predicted that the current copper mine project pipeline points to a 30% supply deficit by 2035.
Against this backdrop, copper mining...