Gold's Relationship with the U.S. Dollar Is Complicated - WGC

According to foreign media reports, Resolution Copper has awarded approximately $110 million in drilling and underground development contracts as work advances at its proposed copper mine in Arizona, one of the world’s largest undeveloped copper deposits. Major Drilling America will undertake deep-hole directional diamond core drilling over the next two-and-a-half years, including drilling from the surface and from approximately 6,800 feet underground. Four large surface drilling rigs are planned for the programme, with two already on site and another two expected by the end of 2026. Redpath USA Corporation will undertake the first phase of underground development, including converting two existing shafts, each approximately 7,000 feet deep, for development activities. The contractor will also install underground infrastructure, construct a mine station at around 6,800 feet below surface and develop approximately 1,500 feet of new tunnels and supporting facilities. The contracts form part of an early phase of Resolution Copper’s planned $500 million investment programme, following completion of key environmental review and land-exchange processes earlier this year. The project is jointly owned by Rio Tinto with a 55% stake and BHP with 45%. If developed, Resolution Copper is expected to have the capacity to meet up to a quarter of annual US copper demand. However, a final investment decision remains subject to further data collection, permitting and partner approvals. From a copper-market perspective, the latest contract awards mark another step in advancing a potentially significant source of long-term US mine supply. While commercial production remains dependent on an eventual investment decision and further development, progress at Resolution is increasingly relevant as the US seeks to strengthen domestic copper supply amid rising requirements from power infrastructure, manufacturing and electrification.

The Lumwana Super Pit Expansion in Zambia remains on schedule, with first copper production targeted for the end of Q1 2028, keeping one of the country’s largest copper growth projects on its planned development timeline. According to the latest quarterly update from Barrick Mining Corporation, construction advanced during Q2 2026, with the second lift of the mill walls and roller slab completed and civil works for the primary crusher progressing. Civil construction also commenced on the transfer towers for the overland conveyor system. Most major long-lead equipment is now on site, including the mill shells and trunnions, primary crusher and tailings thickener. The expansion is expected to substantially increase Lumwana’s processing capacity and lift average annual copper production to around 240,000 tonnes once completed. The additional output would strengthen Lumwana’s role in Zambia’s medium-term copper supply growth and provide a significant contribution toward the country’s broader production expansion ambitions. From a copper supply perspective, maintaining the Q1 2028 first-production target improves visibility over Zambia’s medium-term mine supply pipeline. The project is particularly significant as Zambia seeks to translate a growing pipeline of mine expansions and new developments into sustained increases in national copper output. Continued progress at Lumwana will therefore be an important indicator of Zambia’s ability to deliver the next wave of additional mined copper supply from 2028 onward.

According to foreign media reports, India's state-owned Hindustan Copper is exploring plans to supply copper concentrate sourced from Chilean state miner Codelco to domestic producers Hindalco Industries and Adani, as India seeks to secure raw materials for its expanding copper industry. Hindustan Copper, Coal India and NTPC Mining are reportedly assessing opportunities involving four copper mining blocks held by Codelco in Chile. Hindustan Copper signed a preliminary cooperation agreement with Codelco in 2025, followed by a non-disclosure agreement in May 2026, with due diligence now underway. The move comes against a widening gap between India's copper consumption and domestic supply. India currently produces around 573,000 mt of refined copper annually, while domestic demand is estimated at approximately 1.8 million mt. Government estimates suggest that the country could eventually depend on imports for 91%-97% of its copper concentrate requirements by 2047. India has been expanding domestic copper smelting and refining capacity as electricity infrastructure, renewable energy, manufacturing and transport increase demand for the metal. However, expanding processing capacity without a corresponding increase in domestic mine supply increases the country's exposure to the international concentrate market. Securing access to Chilean resources could therefore provide Indian smelters with greater long-term supply security while reducing reliance on spot concentrate purchases. Market Impact: India's push into overseas copper resources could introduce additional competition for internationally traded concentrate at a time when mine supply growth is struggling to keep pace with expanding global smelting capacity. As India builds out its copper processing industry, its growing requirement for imported feedstock could increasingly influence Asian concentrate trade flows and competition for long-term supply contracts.