Global Copper Mining Production Could See Steady Growth Over Next Few Years
Financialnewsmedia.com News Commentary
PALM BEACH, Fla., July 29, 2020 /PRNewswire/ -- Although the effects of mine closures as a result of Covid-19 have had an extensive impact on the possible production volumes of many copper mining companies worldwide, the coming years, revenues are still projected to continue to grow through 2029. Global copper mine production will see steady growth over the next few years, as a number of new projects and expansions come online, supported by rising copper prices and demand, Fitch Solutions forecasts in a new report. The Fitch analysts in Mining.com predict: "global copper mine production to increase by an average annual rate of 3.1% over 2020-2029, with total output rising from 20.3 to 26.8 million tonnes over the same period. In 2020, Fitch forecasts Chile to increase production modestly by 0.5% to 5.89 million tonnes… Downside risks to production will stem from declining ore grades across the country, unfavourable climate, protests that hamper supply chain operations and union strikes, analysts predict." Active mining stocks mentioned in today's commentary include: Ridgestone Mining Inc. (TSX-V: RMI) (OTCQB: RIGMF), Southern Copper Corporation (NYSE: SCCO), B2Gold Corp. (NYSE: BTG) (TSX: BTO), Alamos Gold Inc. (NYSE: AGI) (TSX: AGI), Kinross Gold Corporation (NYSE: KGC) (TSX: K).
The Fitch report continues: "Fitch forecasts Chinese copper mine production to increase at an average clip of 1.8% per year over 2019-2028, compared with an average growth rate of 6.9% over the past 10-year period. This slowdown in production growth will be driven by closures of low-grade copper mines in China and delayed planned capacity expansions. Growth in domestic production will still be positive as new projects come online. A weaker Chinese yuan against the US dollar will help reduce costs for domestic Chinese mines, says Fitch. China, being the world's largest consumer of refined copper and third-largest producer of mined copper, will look to develop foreign assets to improve its resource security. Chinese copper miners will remain committed to investing in copper deposits abroad to secure access to high-grade, low-cost material. US copper miners are better positioned financially than operators in other markets, having worked to cut operating costs and increase profitability over recent years. In the longer term, Fitch believes copper outlook in the country will recover, driven by a rise in copper prices and continued foreign investment which will be lured by the country's high-grade reserves."