Copper has rallied in recent months to surpass $10,000 a metric ton, fueled by bets on looming shortages as mines struggle to meet rising demand from electric vehicles, grid infrastructure and data centers. New deposits are getting harder and costlier to extract while growing scrutiny of environmental and social issues also are discouraging investment.
Climate related disruptions would add another layer of supply risk. While the effects of rising temperatures and shifting weather patterns are widely documented for agricultural commodities, the impact on minerals is less known.
Zambia’s copper mines are facing a power supply squeeze as drought roils hydroelectric installations. In Chile, water shortages have restrained copper production in recent years as the industry invests in the use of seawater.
For each of the nine commodities in the PwC study, at least 40% of global supply is produced from no more than three countries….
