[MEDIA] Garimpeiro could list lots of reasons why Musk was...

Garimpeiro could list lots of reasons why Musk was talking nonsense with his copper call. But he’ll just mention that the world’s biggest copper producer, Chile’s state-owned Codelco, this week said there will be a supply deficit of 8 million tonnes by 2032.

To bring the market in to balance, eight new Escondidas – the world’s biggest copper mine in Chile owned by BHP and Rio Tinto – would be required to be in full production by 2032.

That is an impossible task and is why BHP says that after 2025, a “durable inducement pricing regime’’ will be needed to encourage investment in new production to close the supply deficit. It means much higher prices are needed.



Sonia Scarselli, Vice President of BHP’s Xplor program, said yesterday:
“We need to find the resources before we need them – we need to find more copper mines than we have today if we want to supply the amount of copper, if we want everyone to have an EV, if we want solar panels, if we want wind [turbines] and so on.”

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.