“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,” Pacheco said at the Asia Copper Week conference in Singapore.
Pacheco’s comments echo the view of several analysts, who predict a supply gap for the next decade estimated at six million tonnes per year. They attribute the upcoming deficit to a ramp up in the clean energy and electric vehicles (EV) sectors.
Based on studies conducted by Codelco, Pacheco said the world’s energy transition to stop climate change will take demand for the orange metal from 25 million tonnes per year to just over 31 million tonnes in 2032.
This means the world would need to build eight projects the size of BHP’s (ASX: BHP) Escondida in Chile, the world’s largest copper mine, over the next eight years.
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