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Friday, Apr 26, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Copper

Global copper market value set to reach $254.3B by 2027: Report Linker

The report estimates the copper industry will expand because of its applications in electric car vehicles and construction

Carmaker Stellantis and Rio Tinto invest in McEwen Copper Argentinian mine
Photograph of bundles of crimped cathode copper ready for transport. Photo via ChrisFountain via Wikimedia Commons

The global copper market will reach a value of approximately $176.7 billion in 2023 and it’s set to increase in the following years because of its applications in electric car vehicles and construction, according to a new report by Report Linker.

A recent report by the analytics firm Report Linker, estimated that the copper industry will experience a Compound Annual Growth Rate (CAGR) of 9.5 per cent, reaching $254.33 billion by 2027.

The growth of the copper market is attributed to the increasing number of construction projects in rapidly developing countries such as China and India, driven by their growing populations and infrastructure needs.

Copper ore mining involves a complex process that begins with the extraction of ore containing less than 1 per cent copper and culminates in the production of cathodes, which are sheets of 99.99 per cent pure copper used to manufacture everyday items. The two most common forms of copper ore are copper oxide and copper sulfide.

The main categories of copper ore mining are the refining industry, metal processing industry, chemical industry, and other types. The refining industry is responsible for producing and supplying oil and oil products. Mining types included underground and surface mining.

Read more: Teck Resources and Agnico Eagle Mines join forces on new Mexican zinc-copper venture

Read more: Libero Copper works with Government of Colombia on secure copper supply chain for sustainable energy transition

Among the top players in the copper industry, the report identifies the Chile state-owned Codelco, Glencore plc (LON: GLEN), BHP Billiton (ASX: BHP), Southern Copper Corp. (NYSE: SCCO) and Freeport-McMoran Inc. (NYSE: FCX).

This month, Vancouver’s Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK) rejected an unsolicited acquisition offer of $22.5 billion from Switzerland’s mining giant Glencore.

The government of British Columbia saw a jump in copper expenditure of 84 per cent in 2022 after breaking records by allocating a staggering $740 million to its exploration sector, surpassing its previous high of $681 million in 2012.

Leading vehicle maker Stellantis (NYSE: STLA) (Euronext Milan: STLAM) (Euronext Paris: STLAP) recently invested US$155 million in a copper mine owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)’s subsidiary McEwen Copper in Argentina to secure its electric vehicle battery raw materials.

On the same day, Rio Tinto Ltd. (ASX: RIO) (LON: RIO)’s latest venture Nuton LLC announced it entered into an agreement with McEwen Copper to invest $30 million in the mine to advance its copper mining operations.

 

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