Fitch: Energy Transition Means Bright Outlook for Copper Miners

Foreign news reported on September 1 that Fitch ratings said in a report last Thursday that energy transition means good prospects for copper miners. Fitch said in the report that copper's key role in the energy transition will support long-term demand and create profitable opportunities for copper miners, which are also eager to increase the share of copper in their mining portfolios. Many copper miners have conservative leverage ratios and have ample room for growth.

Fitch ratings said in a report last Thursday that energy transition means good prospects for copper miners. Fitch said in the report that copper's key role in the energy transition will support long-term demand and create profitable opportunities for copper miners, which are also eager to increase the share of copper in their mining portfolios. Many copper miners have conservative leverage ratios and have ample room for growth.

However, the report also noted that meeting growing demand will be a challenge as copper development projects become more expensive and complex due to tightening environmental regulations and the location of projects in high-risk operating environments.

“The energy transition requires not only more copper, but sustainable sources of the metal, so it forces miners to decarbonise their operations. Given that around half of carbon emissions typically depend on electricity supply, miners are expected to switch to renewable or low-emission electricity supplies. "