Peru is one of the prime copper mining destinations for miners from every corner of the globe. Some of the largest deposits of the red metal are sitting in the ground in this mining-friendly country. For Anglo American, the Quellaveco Mine presents an opportunity to add another world-class cost-efficient mining operation to their diversified portfolio.
Anglo American is part of a group of miners that contributed 58% of mining investment in Peru in January. While mining investment in Peru slumped because of the pandemic and remains below pre-pandemic levels, investment in infrastructure and planning has restarted in earnest now. The Quellaveco Mine is a significant focus of capital expenditure for the company, and it’s pretty easy to see why.
According to Bloomberg, “Within a decade, the world may face a massive shortfall of what’s arguably the most critical metal for global economies: copper.
The copper industry needs to spend upwards of $100 billion to close what could be an annual supply deficit of 4.7 million metric tons by 2030 as the clean power and transport sectors take off, according to estimates from CRU Group. The potential shortfall could reach 10 million tons if no mines get built, according to commodities trader Trafigura Group. Closing such a gap would require building the equivalent of eight projects the size of BHP Group’s giant Escondida in Chile, the world’s largest copper mine.”
Copper miners are scrambling to keep up with demand, and for the time being, prices continue to climb due to the supply shortfall. In the coming years, companies will need to manage their projects to avoid overproduction and a glut of the valuable metal, but for now, there are plenty of opportunities to ramp up production and get more copper into the market.
This is great news for companies that are developing and investing in new projects right now,
The mine is one of the largest copper deposits in the world and is located in Peru’s most established copper-producing region. Due to the skilled workers and established infrastructure, the project is likely to be a big winner for the company when it begins.
Anglo American expects the mine to be ready for 2022, at which time the first copper production will begin. This project seems to be coming at just the right time to take advantage of a confluence of events and circumstances in the global economy and the process of electrification worldwide. For now, investors will be watching for any sign of the Quellaveco Mine proceeding according to plan, and Anglo American will need to deliver on many of their promises to deliver this project on time and on budget.
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