Copper Demand Rising, Search for New Deposits Going Strong

Copper is a key part of the energy transition, but as demand increases and large mines reach the end of their lives, questions are being raised about where future supply will come from.

Teo Dechev, CEO, president and director of prospect generator Mundoro Capital (TSXV:MUN,OTCQB:MUNMF), said the process of finding an economic deposit can take a decade, if not longer — but the metal is definitely out there.

“It’s, I think, a little bit of a simplification for our industry to say that there isn’t really any copper on the planet,” she said. “There’s lots of copper — but economic, long-term, sustainable copper is more difficult to find.”

Mundoro is focused on exploring for copper porphyries as well as gold, and Dechev said the company sees opportunity in Europe’s Western Tethyan Belt and in the Laramide Belt in Arizona, US. Mundoro’s portfolio contains more than a dozen properties, and its partners include Vale (NYSE:VALE), BHP (ASX:BHP,NYSE:BHP,LSE:BHP), Kinross Gold (TSX:K,NYSE:KGC) and JOGMEC.

When asked about the outlook for copper given recession concerns in the US and globally, Dechev said it’s important to look at both short- and long-term factors — while most industrial commodities are likely to face headwinds in the short term, electrification is a long-term trend, and copper will be a fundamental metal in the shift to a greener future.

She also pointed out that 70 percent of all copper production comes from porphyries, with only about a dozen mines accounting for most of that supply. As these mines continue aging, it’s important for companies to ramp up exploration efforts.

“When you’re trying to replace one of those, it’s a decade-long process of exploration, if not longer,” she said. “What we’ve seen as a company and from our partners is that that search for more large-scale porphyries is very much strong, and there’s a strong pipeline of exploration. I don’t think that’s going to go away any time soon. Yes, there will be short-term pressures on the copper price, which will be opportunities for investors, but long term it is not a deterrent.”

Watch the interview for more from Dechev on the copper market. You can also click here for our Rule Symposium playlist.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

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