Adkerson, top tier copper mining’s longest serving CEO, said the task of ramping up copper supply is getting harder as societies and communities resist new mines and politicians seek a bigger share of the profit:
“That’s just the reality around the world today.”
In Chile, Freeport is deferring a decision on a major project until it gets further political clarity, Adkerson said according to a Bloomberg report adding that even the investor-friendly US has proven reluctant to green-lighting new mines.
Despite this, Freeport is well positioned for growth via expansion projects at existing operations, he said and in anticipation of rising demand, Freeport expects its capital expenditure to be $4.7 billion in 2022, compared with $2.1 billion last year. Excluding Indonesian smelter projects to serve the company’s expanded Grasberg operations in the country, the figure is estimated to be $3.3 billion.
According to some estimates a supply gap of 8 million tonnes will open up by the end of the decade. The 10-year supply gap compares to annual mine production of little over 20 million tonnes last year and refers to the difference between demand and primary output from existing and projects already committed to.
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