Copper at a crossroads

CHILE

Copper at a crossroads

CRU’s World Copper Conference was run at the start of April 2025 in Santiago, Chile, with the industry facing a crossroads. The Americas account for nearly half of the world’s mined copper, with South America producing 38% and North America contributing 10%. However, North American copper mines face cash costs 51% above the global average and 79% higher than those of their South American neighbours, positioning the region as one of the most expensive copper-producing areas globally. These high costs create a significant challenge, especially as securing a reliable copper supply has emerged as a geopolitical priority.

Compounding this issue, global copper demand is forecast to outstrip supply, with year-on-year deficits steadily increasing. In response, the United States and Canada have designated copper as a critical mineral essential for national security and supply chain resilience. To address this growing need, several major copper projects in North America hold the potential to boost regional output. In the US, notable tier 1 projects include Resolution, Pebble, and Mason, while in Canada, the Highland Valley Extension and Yellowhead projects hold the most promise. However, these projects are often stalled by prolonged regulatory delays and permitting obstacles.

Mining projects in North America often take multiple decades to move from discovery to production. For example, the Resolution deposit, identified by Magma Copper Company in 1995, saw Rio Tinto and BHP form Resolution Copper Co. in 2004. Since then, the project has navigated a gruelling permitting process, its fate shifting with each US administration—most recently stalled by Biden in 2021. However, with President Trump’s early 2025 executive order to prioritise domestic critical minerals, Resolution’s ramp-up phase is likely to accelerate. Its prolonged timeline reflects a broader trend among North American mining projects.