About 6.4 million tonnes of copper production capacity, equal to more than 25% of global mine output, is stalled or suspended due to environmental, social, and governance (ESG) issues, a new study shows.
These bottlenecks, unlike geological or technical barriers, stem from conflicts that could be resolved through stronger governance, deeper community engagement, and more sustainable practices, according to analysts at GEM Mining Consulting. The findings come as demand for copper continues to surge, driven by electrification, renewable energy growth, and the digital economy.
Countries including Chile, Peru and the United States hold some of the largest copper reserves now off the market. Unlocking even a fraction of these projects could ease looming supply shortages during the energy transition, Patricio Faúndez, head of economics at GEM, says.
