People might need a telescope to see Copper prices in 2021 – Ivanhoe’s Friedland

Map of the Copperbelt of Africa bordering DRC and Zambia.

IVANHOEs Friedland is bullish copper. After having invested $USD1.2billion to develop the Kamoa-Kakula project in the Democratic Republic of Congo, it is no surprise that Ivanhoe Mines’ executive chairman, Robert Friedland, is bullish on copper.

The engine that drives his confidence comes in the form of electric vehicles which, according to investment manager U.S. Global Investors, need up to four times the amount of copper traditional cars need and whose demand is expected to grow so much that, by 2027, 1.74 million tons of copper will be needed to meet it. Today’s demand is of 184,000 tons.

China is the main consumer of the world’s copper, with imports reaching 17.35million tons in 2017. In its quest to curb pollution, the Asian giant is forecast to become one of the largest EV manufacturers in the coming years, thus increasing its copper needs even more.

Precisely talking to U.S. Global Investors about this topic, Friedland said that within this context people are going “to need a telescope to see copper prices in 2021.” Besides increased demand, he thinks prices could hit higher notes due to global supply disruptions such as those caused by labor negotiations in the world’s No.1 producer -Chile.

Ivanhoe Mines chairman, however, is confident his own project is going to continue to move forward smoothly. Located in an uninhabited area within the Central African Copperbelt, Kamoa-Kakula is set to become the third largest copper mine in the planet, only topped by Escondida in Chile and Australia’s Olympic Dam in terms of sheer size. Its resource base was lifted above a billion ton and its average copper grade is estimated at 7.3 per cent.

Even though copper experienced a considerable fall this week, it had been on a tear since May 2017, reaching $7,000/ton for the first time in three years. Together with prices, China’s imports climbed to 17.35million tons in 2017, up 2.3%.

Zambia Business Times Mining note – CNMC Baluba Mine to Re-Open

Copper has outperformed and the 36% rally has spelt fortunes for Zambia, DRC and South America. There’s enough positives supporting even a higher rally ranging from the electric car era in 2020 to fresh demand from scrap metal legislation in China. The globe is on a recovering streak and this has given copper the requisite momentum to beat the $USD7,000/ton mark on the London Metal Exchange – LME. The world waits for the next statement copper will signal after the current level.  In Zambia it is very evident that almost all mines that were in placed under care and maintenance are flourishing back to life.

Just last week China Nonferrous Mining Corporation – CNMCs Luanshya Copper Mine – LCM hinted a $USD13million injection to reopen Baluba mine.

CNMC Luanshya Copper Mine Deputy Chief Executive Officer, Wang Jingjun said the firm was looking forward to reopen Baluba mine this year after the increase in copper prices on the London Metal Exchange international market.

He has appealed to members of the public to take time to understand and appreciate the challenges the mining company was facing such us increment in the price of sulphuric acid, electricity tariffs by Copperbelt Energy Corporation and paying back of the loan especially now that the operations of Baluba mine were about to resume.

Speaking during a meeting with CNMC Luanshya Copper Mine Deputy Chief Executive Officer, Wang Jingjun held at the Mine’s Head Office in Luanshya on Thursday, Mr. Chanda has called on CNMC Luanshya copper mines to support local suppliers and contractors once Baluba opens.

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