Copper Prices Strengthened, Active Trading in Copper Scrap Market [SMM Secondary Copper Daily Commentary]

Botswana's Khoemacau copper mine increased copper production in the second quarter of 2026 as improved ore grades offset lower mining volumes, while construction of its major expansion project continued to advance. According to MMG Limited's second-quarter production report, Khoemacau produced 11,423 tonnes of copper in concentrate during the three months ended 30 June, representing a 7% increase from the previous quarter and remaining broadly in line with production achieved in the corresponding period of 2025. Although ore milled declined year-on-year, the operation benefited from improved copper grades of 1.62%, up from 1.59% a year earlier, as mining progressed into higher-grade sections of the Zone 5 orebody. Metallurgical recovery remained stable at 88.2%. MMG said lower ore mined volumes reflected earlier development delays and reduced equipment availability. However, the company expects operational performance to strengthen during the second half of 2026 as new mining equipment is deployed, refurbished fleet units are commissioned, and access to higher-grade mining areas continues. The company maintained its 2026 copper production guidance of 48,000-53,000 tonnes while lowering C1 cash cost guidance to US$1.70-US$2.00/lb, supported by stronger silver prices. Construction of Khoemacau's expansion project also progressed during the quarter. The project is designed to increase annual copper production to 130,000 tonnes of copper in concentrate and more than 4 million ounces of silver, with first concentrate expected in the first half of 2028. Continued progress at Khoemacau reinforces Botswana's position as an emerging copper producer at a time of tightening global supply. The expansion is expected to add meaningful new copper capacity over the medium term, supporting long-term supply growth as demand from electrification, renewable energy and electric vehicle manufacturing continues to accelerate.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 05 Aug , 2026

Mining operators across Zambia are formalizing their policy demands ahead of the upcoming national elections, calling on the government to strengthen incentives for local mineral processing, greenfield exploration, and power generation expansion. Industry leaders emphasize that these measures are vital to achieving the national benchmark of tripling annual copper output to 3 million tonnes. This push coincides with a tight physical market, where surging demand for critical metals in electric vehicles, power networks, and construction has driven benchmark copper futures up over 40% in the past year to $14,000 per tonne. Fiscal stabilization and closer engagement with miners have already drawn over $10 billion in committed investment to Zambia since the 2021 election. However, expanding long-term output hinges on resolving critical infrastructure bottlenecks. According to the Zambia Chamber of Mines, maintaining a robust exploration pipeline via greenfield spending and licensing reforms is essential to secure real industry growth. Meanwhile, unintegrated producers continue to advocate for export duty relief on copper concentrates. Industry executives estimate that Zambia needs at least 2,000 megawatts of additional generation capacity to prevent severe power shortages from capping planned mine expansions. Because mining remains the country's economic backbone, contributing 9% of GDP, 72% of export earnings, and nearly half of government revenue, analysts expect general policy continuity for foreign direct investment following the polls.