Current trends in the Global Copper Market
Four trends emerge from the copper market that make Serena Resources Limited’s investment in the Trebolar Copper Exploration District a prime opportunity.
1. Demand for copper is accelerating
Total world copper production is about 16 million tonnes per year and is forecast to increase by 5.1% in 20121. China currently accounts for approximately 40% of world copper demand, with demand in China increasing at a rate of 13.6% over the last 20 years2. Growth in world demand is forecasted to increase by 3.9% in 2013.
2. Supply will not keep up
Globally, economic copper resources are being depleted with the equivalent of three entire world-class copper mines being consumed annually. World demand for refined copper is forecasted to exceed production by approximately 240,000 tonnes in 2012. If this production deficit eventuates, 2012 will be the third consecutive year in which demand has outstripped supply1.
Many copper mines (and entire districts or regions) are getting so old that ore reserves are being depleted and production is diminishing. Between 2010 and 2015, many old mines will be closed.
3. Declining production from 2014
After 2014, there will be an inevitable decline in the production of refined copper (which corresponds closely to copper mine production).
4. New discoveries declining – despite increased spend on exploration
World discoveries of copper peaked in 19963. Since then, despite massively increased expenditures on exploration, the rate of discoveries has dropped off. At the same time, fewer and fewer experienced geologists with hands-on experience in copper exploration are still active.
The above information is a summary. For more detailed information on the global copper market, please contact Clive McKerr.