By Mark Rachovidis*
The price of copper continues its upward course, due to the various issues presented at the supply level, with analysts estimating that the shortage of the red metal worldwide will continue as throughout the decade.
This is due to a combination of factors, such as increased demand due to the recovery of the Chinese economy, the drive to transition to a green economy and mining problems in Latin America.
Peru's mines, despite showing particular resilience at the start of the crisis, are now reeling from protests that broke out last month, which have affected exports to countries that use significant amounts of copper in their industries. The Latin American country, which is the world's second largest copper producer, accounts for 10% of the world's copper supply.
However, apart from political instability, another factor affecting global supply is low ore quality, an issue that Chile, the world's largest copper producer, which accounts for 27% of global output, has already had to deal with. offer. The country recorded a drop in copper production, falling 7% year-on-year in November – with Goldman Sachs analysts predicting that it will put even lower amounts of copper on the global market over the next two years.
At the same time, the global economy cannot rely on new copper mining projects, as it takes many years to develop new mines in the hard-to-reach areas where large reserves exist.
At the same time, copper is expected to play a larger role in the economy over the next decade, further exacerbating the problem of its shortage. In fact, analysts at the consulting firm Wood Mackenzie estimate that the current deficit is likely to continue until 2030.
According to the head of the American fund BNY Mellon Natural Resources, Mr. Al Chu, copper is going to go through a transitional stage of “generational shift” in terms of demand, due to coalification. “Copper is usually used as a construction metal for wiring in buildings, machinery, etc. In fact, if we look at the prevailing trend for zero-balance energy and de-carbonisation, copper is the new oil”, he said in his recent statements.
In addition, he noted that the demand for renewable energy sources will lead in a “multi-year tsunami of demand” that implies an even greater increase in the price of copper.
In this context, Cyprus has the potential to play an important role in the global copper supply chain, promoting and facilitating the implementation of new projects in the raw materials sector. With significant untapped copper resources, the country can benefit from rising global prices, which can translate into new jobs and services, as well as additional government revenue.
Exploration and mining companies operating in Cyprus, which use modern mining and mineral processing methods that minimize environmental impact, can recover secondary concentrations of metals created decades ago, which have accumulated in mining tailings and tailings ponds at all lengths and back of the island.
In particular, the company Venus Minerals has made a promising discovery in Kokkinoya, with a reserve potential of 9.5 million tons with an average content of 0.65% copper.
< p>Therefore, amid the growing global demand for copper, I believe that Cyprus is facing a huge opportunity: The exploitation of the country's untapped copper reserves can create added value for the Cypriot economy, due to the expected increase in copper price and the diversification of the economy. At the same time, it will contribute to the elimination of environmental risks arising from mining waste, enhancing the cultivation of the land anew.
*President of Venus Minerals
