Australian minerals explorer Minotaur says copper is set for a supply crunch amid increasing worldwide consumption.
In an ASX information sheet Minotaur said declining ore grade challenges expected to continue, especially in dominant ore producing countries such as Chile and Peru and there was a lack of mega-projects coming on board due to increased investment costs required for mine construction over the past decade and local stakeholder opposition
With large proportion of mines currently in operation expected to reach end of their productive lives by 2035 the supply gap forecast to be 8Mt by end of 2030 and minerals exploration will need to go more under cover as depth of cover for major mineral discoveries in Australia is increasing.
Minotaur said the long term demand remains strong driven by renewable industry and though demand in China is easing, modest growth is expected in construction, consumer products, transport support and power infrastructure while continued urbanisation in emerging markets such as India and other Asian countries will also spur demand.
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