WBMS: Global Copper Demand Outstrips Supply in January-May 2017

Lundin Gold has identified two additional porphyry systems, Sandia Northeast and Sandia Southeast, at its Sandia copper-gold discovery in Ecuador, increasing the number of known porphyry centres at the Fruta del Norte district from five to seven. The company expects to publish a maiden resource estimate for Sandia in early 2027. The deposit currently covers an interpreted footprint of approximately 1.6 km by 700 metres and extends to a depth of about 1 km within a 5-km mineralized corridor. According to Jefferies, Sandia could support an initial resource of approximately 500 million to one billion tonnes based on its current dimensions, while remaining open to the north, east and at depth. Lundin Gold believes continued exploration success could significantly enhance the long-term value of the Fruta del Norte district and potentially support the development of a large-scale copper-gold operation.

Grupo Mexico expects the global copper market to remain in a slight deficit in 2026, supported by a resilient U.S. economy and growing demand from decarbonization technologies, artificial intelligence and electric vehicles, according to Leonardo Contreras, head of the company's mining division. The company said current supply and demand fundamentals point to a tight copper market, with demand continuing to strengthen across energy transition, AI infrastructure and EV applications. Grupo Mexico also reported a 79% year-on-year increase in second-quarter net profit, driven by stronger copper prices.

Chile plans to attract around US$100 billion in copper investment over the next decade to meet rising demand from artificial intelligence, data centers, power grids and the energy transition, while reducing its reliance on the Chinese market, Foreign Affairs Minister Francisco Pérez Mackenna said. He noted that China will remain a key customer, but Chile aims to diversify its export destinations and invest in expanding refined copper production rather than relying primarily on copper concentrate exports, increasing the value added of its copper industry. Chile has also begun negotiations on a free trade agreement with India and plans to strengthen trade ties with neighboring countries as part of its broader strategy to expand export markets. Against the backdrop of tightening global copper concentrate supply and expanding Chinese smelting capacity, annual concentrate contract negotiations have become increasingly challenging.