The copper mining market is set to hit USD$11.17 billion by 2023 with a Compound Annual Growth Rate (CAGR) of 3.3 per cent, according to a new report by Fortune Business Insights.
In 2022, the market was valued at USD $8.44 billion. The report explains that the burgeoning need for copper as a primary resource in diverse industries like infrastructure development, transportation, construction, electrical and electronics, and manufacturing is propelling the expansion of the copper mining sector.
Additionally, as the global population, industrialization and urbanization continue to rise, there is a corresponding surge in demand for copper-based materials, further fostering market growth.
The growing demand for clean energy sources and carbon-free transitions is propelling the copper market. In particular, electric vehicles rely heavily on copper for efficient energy transmission and storage. Copper is also an excellent conductor of electricity and heat which makes it indispensable for wiring and circuitry.
However, it’s worth noting that the copper extraction process brings about various environmental consequences, including habitat destruction, soil erosion, and deforestation. These impacts are anticipated to act as obstacles to market growth.
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To acquire refined copper, copper ores undergo several stages of separation and processing. Moreover, depending on the copper extraction technique employed, open-pit mining is usually employed, entailing the gradual descent of a series of stepped benches further into the ground.
As for disruptors in the market, the outbreak of COVID-19 caused a decline in copper mining activities because of government regulations. For example, building new infrastructures such as 5G networks and electric vehicle charging stations was postponed.
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Latin America dominates the market share
According to the report, Latin America dominated the copper mining market share, primarily due to the extensive presence of copper mines. Chile, for instance, held the title of the world’s largest copper producer and exporter, while Peru also played a significant role as a major copper producer within the region. Notably, mines like Antamina, Tocquepala and Las Bambas made substantial contributions to Peru’s copper production.
The collaborative strategies among companies have been instrumental in boosting production in the region. As an example, in August 2023, Corporación Nacional del Cobre de Chile (Codelco) and Anglo-American joined forces to enhance production output in the area.
Read more: Rio Tinto and First Quantum Minerals finalize joint venture for La Granja copper project in Peru
Key players in the market include Freeport McMoRan Copper & Gold Inc. (NYSE: FCX), Glencore plc (LON: GLEN), BHP Group Limited (ASX: BHP), First Quantum Minerals Ltd. (TSX: FM)among others.
The report highlights deals such as Rio Tinto Group’s (LSE: RIO) (ASX: RIO) acquisition of the Platina Scandium project from Platina Resources Limited for USD$14 billion. The Australian giant also signed a deal with First Quantum Minerals to progress to the next phase of the La Granja project in Peru. The project has one of the largest undeveloped copper resources in the world with a published inferred mineral resource of 4.32 billion tonnes at 0.51 per cent copper.
Last April, Glencore signed a partnership with Norsk Hydro ASA to gain 30 per cent equity stake in Alunorte S.A. and 45 per cent equity stake in Mineracao Rio do Norte S.A.
