AllianceBernstein, a global investment management firm with an independent sell-side research arm, is calling for greater investment in copper to build enough capacity to meet demand.
“At a conservative estimate, the world’s mining community needs to approve the investment of about 1 million tonnes per annum of new copper capacity each and every year and, so far, this has proven impossible,” Paul Gait of Bernstein’s European metals and mining division, warned in a recent research note.
“In part, this is because of the capital intensity and lead times that are required to create the economies of scale to profitably exploit either low grade copper, or copper that is situated at extreme depth,” the London-based analyst explained, describing the red metal as “the scarcest and most important industrial commodity.”
“It is fair to say that the continued flow of copper is a global strategic imperative and even more so if we are ever going to meet the demands of the green energy revolution,” Gait noted.
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