Lumina, First Quantum Formalize Ecuadorian Excursion

Canadian miners Lumina Gold and First Quantum Minerals are now bound together after the two signed...

June 21st, 2018

Anglo American Sets Off on Brazilian Adventure

Anglo American is exploring for the red metal in the north of Brazil after securing hundreds...

June 20th, 2018

BHP Offloads Baby Copper Mine

The mining giant has sold its Cerro Colorado mine in Chile to EMR Capital, an Australian...

June 19th, 2018

Glencore Solves Problem by Throwing US$3 Billion at It

Glencore has agreed to pay US-sanctioned Israeli billionaire Dan Gertler the US$3 billion in royalties his...

June 15th, 2018

Anglo American Sells 21.9 Percent of Quellaveco to Mitsubishi

The Japanese company will now own 40 percent of the massive copper project, while Anglo American...

June 14th, 2018

7 Basic Copper Facts for Investors

What is copper? Here are 7 basic copper facts investors interested in the red metal should...

June 14th, 2018

Southern Copper to Begin Operations at Michiquillay in 2022

Southern Copper's CEO says the company hopes to conclude negotiations with locals in a year and...

June 13th, 2018
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Type “

Type “brief overview of the copper price today.

Use of Copper

The melting and use of copper goes back more than 10,000 years and has been found in early civilizations all over the world. Adding tin to copper to make bronze made the metal easier to cast. Bronze was used in all aspects of life. Today, it is used for wiring, plumbing, coinage, electronics, and a variety of other applications. Given increased development in countries such as China, India, Brazil, and Russia, the use of copper is on the rise. China is using more and more copper, and its contribution to world demand has risen from 22 percent to 40 percent since 2008. With increased use in cell phones (and cell phone towers), computers, cars (think hybrids!), smart homes, pipelines, and supertankers, the increase in demand isn’t likely to let up.

And recycling copper pipes is not enough to meet the new demand. Annual global copper production exceeds 33 billion pounds, or more than 15 million metric tonnes. The identification of new reserves needs to happen at a significant pace in order to maintain those production levels. Certainly, despite a current state of oversupply in the copper space, a number of analysts and market watchers are calling for a copper supply crunch in coming years.

Copper Production

In order to bring new production online, junior exploration companies are scouring the world to find new deposits. Chile is the largest producer of copper and contains a massive 38 percent of known reserves. However, many other countries also have significant known reserves including the United States, Peru, Australia, Mexico, and Canada. The USGS also estimates that northeast Asia (Far East Russia and northern China) could hold 260 million metric tons of undiscovered copper reserves.

Investing in Copper

The returns can be significant. Peru Copper listed on the Toronto Stock Exchange in the fourth quarter of 2004. At that time, the company was worth about $150 million. In June 2007, the company announced a friendly buyout by Aluminum Corporation of China that valued the company at more than $900 million. This represents a 500 percent increase in less than three years.

In December 2005, Northern Peru Copper Corp issued more than 2 million shares at $1.50 per share in a private placement. All outstanding shares of the company were recently bought by China Minmetals Non-ferrous Metals Co., Ltd and Jiangxi Copper Co., Ltd. for $13.75 per share. That’s an amazing return of more than 800 percent in two years.

Consider also the success of Canadian mining legend Ross Beaty with his Lumina Copper group of companies, who reportedly brought over $1.4 billion back to investors through the sale of those companies and assets with only $170 million invested. Lumina was eventually bought by First Quantum Minerals.

The hunt is on for the next copper deposit and the next company that will bring huge returns to investors.

For more copper market news and information on the copper market, check out some of the following articles:

Copper Price Forecast 2017: Goldman Sachs Running with the Bulls

Copper Trends: A Review of 2016

3 Copper ETFs

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