Copper at a Crossroads: The Role of Risk in the Challenges Faced by the Copper Mining Industry

 

The new green economy that seeks to end humanity’s dependence on fossil fuels requires the extraction of thousands of megatons of critical minerals. One such mineral, recognized as both critical and geopolitically sensitive, is copper. Every major economy/economic union in the world such as the US, EU, China, and India have realized that securing their interests with regard to the abundant and secure supply of copper is required to maintain current development trajectories and future decarbonization efforts.

Yet, despite the global awareness of the importance of copper and the eagerness of global markets to purchase copper, Canada is yet to ramp up production. As a resource-based economy, Canada is poised to generate incredible revenues on the green transition, but capital remains hesitant to flow towards copper mining projects in Canada.

Adhithya’s talk explores the role of risk in the financial challenges faced by the copper mining sector, and what forms of risk are inherent to mining while others are determined by global hegemons, specifically China.