Aging Copper Mines Are Turning Into Money Pits Despite Demand

Representatives from the world’s biggest copper producers had reason to celebrate when they convened in Santiago on April 15-17 for their annual confab. Global prices for the metal have climbed about 6% over the past year, while those for lithium and nickel have taken double-digit dives. All three have starring roles in the energy transition, the race to wean economies off planet-warming fossil fuels. But copper has a great many uses besides battery packs—it’s in indoor plumbing, cars and electrical wiring—which has helped buttress prices.

Even the more conservative forecasters see demand growing by a third over the next decade, as governments and businesses step up investments in decarbonization. At the same time, the industry faces numerous obstacles to meaningfully boosting output. The new deposits that are needed to replace maturing mines are getting harder to find and develop, with heightened social and environmental scrutiny and long waits for permits. All of that makes projects more time-consuming and expensive, and also tougher to finance.