Codelco Warns of Global Copper Shortages

Codelco, the world’s biggest copper producer has issued a warning – that global shortages of the metal will reach eight million tonnes by 2032.  At a recent conference, Maximo Pacheco, Chairman of the Board of Codelco made some comments of the direction on the copper market:

“Considering that some copper deposits are in the process of stopping production and that other projects are in the process of starting operations, it is estimated that the deficit will be almost eight million tonnes in 10 years.”

He added that Chile, the world’s largest copper producer, produces 5.6 million tonnes a year.  Based on studies conducted by Codelco, Pacheco believes the world’s energy transition will increase demand for the red metal from 25 million tonnes per year to just over 31 million tonnes in 2032.

Pacheco warned,

“If new mining projects do not come into cooperation, the imbalance between supply and demand will begin to be noticed during the second half of this decade in 2026.” 

Experts estimate the industry needs to spend more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030.