Copper is in the eyes of the world due to energy transition. Given this, GCC Advisors Managing Partner Jose Gonzales stated that demand is going to double in the next 20 years.
"There will be a deficit of 8%, and its cost will stand between US$6 and US$8 per pound. In the case of Peru, we could double production, and the (positive) impact on the economy would be great," the expert explained before the Institute of Mining Engineers of Peru (IIMP).
Likewise, Gonzales called for considering that Peru is among the largest copper producers in the world, along with Chile, China, and the United States.
"Besides, Peru has the most important mineable copper reserves in the world," he detailed.
Furthermore, it should not be overlooked that our country has a copper project portfolio worth US$53 billion.
Chile and Australia
The expert commented that, for the moment, Chile has the main reserve, but its mines are several years old.
Similarly, he affirmed that the neighboring country's production is projected to fall by 30% over the next 15 years.
On the other hand, in the case of Australia, its infrastructure is limited and the country has extreme geological conditions.
"The future of copper goes through Peru," he stated when reviewing the outlook for copper around the world.
Lithium’s future
Moreover, Gonzales mentioned lithium —a very necessary metal in electromobility.
"China canceled subsidies for electric cars, but analysts say we haven't seen how the demand for electric cars grows in Europe and the United States," he remarked.
It is also known that U.S. President Joe Biden recently approved the construction of electric car chargers throughout the country. Thus, lithium is expected to return to resume its price over the years.