Canadian miner First Quantum Minerals plans to invest about $5.25 billion in the Taca-Taca copper project in Argentina. The development is expected to create roughly 4,000 construction jobs and 2,000 long-term operational positions. Analysts say the project could become an important new source of global copper supply.

The PSJ Cobre Mendocino copper project has applied for Argentina’s Large Investment Incentive Regime (RIGI), with planned investment of around $630 million. If approved, it would become the first major metal mining project in Mendoza province. The development could strengthen Argentina’s position in global copper supply.

SMM Morning Meeting Summary: Last Friday evening, LME copper opened at $13,474.5/mt, initially fluctuating rangebound and reaching $13,527/mt. Later, the center of copper prices gradually shifted downward, touching $13,290/mt near the end of the session, and finally closed at $13,296/mt, with a gain of 0.28%. Trading volume reached 25,300 lots, and open interest stood at 315,000 lots, down by 497 lots from the previous trading day, mainly due to bears reducing their positions. The most-traded SHFE copper 2604 contract opened at 104,230 yuan/mt, quickly rising to 104,520 yuan/mt, then fluctuated downward, bottoming out at 103,100 yuan/mt, and finally closed at 103,280 yuan/mt, with a gain of 0.45%. Trading volume reached 77,700 lots, and open interest stood at 202,000 lots, down by 2,150 lots from the previous trading day, also characterized by bears reducing their positions.

On May 25 (Sunday), the International Energy Agency (IEA) stated in its latest outlook report that driven by the widespread adoption of electric vehicles (EVs) and rapid industrial growth in Asia, global demand for copper cathode is expected to surge significantly by 2050. While China remains the dominant consumer, emerging economies such as India and Vietnam are poised to reshape the market. The IEA indicated that global copper supply will peak by the end of the 2020s and then decline sharply due to falling ore grades and depleting reserves. The IEA noted that while projects in Africa and Mongolia will boost near-term production, long-term challenges have raised concerns about meeting growing demand. The agency stated that by 2035, global copper supply will be significantly lower than demand. Declining ore grades, rising project costs, and a sharp slowdown in new discoveries are driving the widening supply gap, posing severe challenges for the clean energy transition. Global production of critical energy minerals is on the rise, but the IEA warned that by 2035, the supply of copper and lithium may fall far short of demand. In its latest outlook, the IEA pointed out that rising project costs and a slowdown in resource discoveries are major risks to achieving clean energy goals.

Alejandro Tapi, the head of Escondida, the world's largest copper mine, stated at a Chilean investment conference held in New York on Thursday that Chile needs to make greater changes in regulation and law to boost investment. Chile is the world's largest copper producer, accounting for nearly a quarter of global copper supply in 2024. Miners complain about the country's lengthy and delayed regulatory procedures. With declining ore grades in the country and increasing global demand, substantial investment is needed to boost production and help offset global shortages. "A significant increase in copper demand could attract substantial new investment to Chile, provided we can ensure legal certainty, fiscal stability, and a modern, faster permitting system." "I want to outline the core message: by 2050, global copper demand will increase by 70% from current levels. If we want to seize this enormous opportunity, growth, permitting, and environmental legislation should be an urgent priority." He added, "This is a regulatory issue, and I believe we can improve it to unlock investment." Escondida, the world's largest copper mine, has announced that BHP will invest US$10 billion in the country if environmental permits are approved. BHP stated that it will commence a 10-year investment plan to optimize its concentrator with US$2 billion. According to data from Chile's National Copper Commission, Chile's copper production increased by 4.9% to 5.5 million mt in 2024. Escondida produced 1.28 million mt in 2024. BHP stated that global copper demand was 31 million mt in 2023 and is expected to increase by 1 million mt annually until 2035. The Chilean Congress is passing a bill that will expedite several permitting procedures.

According to SMM, Alejandro Tapi, the head of Escondida, the world's largest copper mine, stated at a Chilean investment conference held in New York on Thursday that Chile needs to make greater changes in regulation and law to promote investment. Chile is the world's largest copper producer, accounting for nearly a quarter of global copper supply in 2024. Miners have complained about the country's lengthy and delayed regulatory procedures. With declining ore grades in the country and increasing global demand, substantial investment is needed to boost production and help offset the global shortage.