Global Race for Copper Resources

March 4, 2025

Currently, the global demand for copper is escalating. This surge is driven by the rise of electric vehicles and clean energy technologies. Countries like India, China, and the United States are prioritising the establishment of secure supply chains.

India’s Copper Exploration Initiatives

Domestic copper production in India has been declining. In 2023-24, production was 3.78 million tonnes, 8% lower than in 2018-19. Consequently, India’s reliance on copper imports has increased .
India has secured a 9,000-sq-km block in Zambia for copper and cobalt exploration. This region is known for its high-grade deposits. The Geological Survey of India will lead the exploration.

Importance of Copper

Copper is the second-most used material in the U.S. defence sector. The projected demand for copper is expected to outstrip supply by 2035. This scenario puts stress on the importance of securing mining operations and developing domestic capabilities.

Global Copper Supply Dynamics

China controls about half of the world’s smelting and refining capacity.
The country is currently tightening its copper ore supply as it aims to manage smelting overcapacity.
This has implications for global supply chains.

Geopolitical Risks in Mining Investments

The Democratic Republic of Congo, Chile, and Peru are critical players in copper mining. These countries have substantial reserves and are expected to meet the rising demand. However, investing in overseas copper assets carries geopolitical risks.

Future Outlook for Copper Production

The International Energy Agency predicts that Africa’s share in critical mineral production will continue to rise. The DRC is expected to become the second-largest copper supplier by 2030. The Indian Ministry of Mines is working to acquire more mineral assets across Africa. However, the global competition for copper resources will intensify.

Challenges in the Copper Supply Chain

The copper supply chain faces several challenges. The U.S. has launched investigations into how copper imports affect national security. This initiative aims to identify vulnerabilities in the supply chain. The decline in treatment and refining charges in China indicates an oversupply issue. Many smelters are likely to suspend operations due to falling margins.

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