On Friday, July 11, Mark Bristow, CEO of Barrick Mining Corp, stated in Zambia that despite the short-term fluctuations in copper prices caused by the US's impending 50% tariff increase, copper miners remain optimistic about the future prospects of copper. The company is expanding its operations in Zambia.
US President Trump announced on Wednesday that he would implement new copper tariffs starting August 1 to strengthen domestic development in critical industries such as defense, electronics, and automotive.
This news drove copper futures prices on the COMEX in New York to a record high.
However, analysts predict that copper prices outside the US may be dragged down as countries like Chile, the world's largest copper producer and the US's largest copper supplier, shift their supply elsewhere in response to the tariffs.
"Copper prices will be as volatile as everything else in the world, and we have to get out of this volatility," Bristow told reporters in Lusaka, the capital of Zambia, on Thursday evening.
Nevertheless, he said that despite the impact of the US tariff policy decision, the long-term trend for copper remains unchanged.
"We are seeing a supply deficit and growing demand, especially with the development of data centers, the shift to cleaner energy, and emerging markets starting to invest in industrialization, which are important consumption areas for copper," Bristow said.
"Therefore, there is a consensus that copper demand is outstripping supply," he said.
Barrick is the world's second-largest gold producer by production, after Newmont. The company is currently investing to increase its copper production.
Barrick is implementing a $2 billion plan to double the annual production of its Lumwana copper mine in Zambia to 240,000 mt by 2028. The company will also extend the mine's life to 2057.
"Currently, most of the copper mining industry is only considering marginal expansions," Bristow said. "We are pleased to have made this investment commitment before supply tightens."
(Wenhua Comprehensive)
