Kamoa-Cakula Copper Mine Targets Expansion Amid Global Copper Supply Challenges
Since the commissioning of the Phase I plant in May 2021, the Kamoa-Cakula copper project has quickly risen as a major player in the global copper industry due to its impressive production capacity and resource reserves. Owned by Zijin Mining and Ivanhoe Mines, the project is now poised to further expand its annual production capacity to 1 million tons, aiming to compete for the title of the world’s largest copper mine.
On May 26, 2024, the Phase III concentrator of Kamoa-Cakula began operations, six months ahead of schedule. This expansion increased the mine’s total capacity to 14.2 million tons per year, pushing copper output beyond 600,000 tons annually, officially making it the third-largest copper mine globally, behind only the Escondida Copper Mine in Chile and the Grasberg Mine in Indonesia.
Escondida, located in Chile’s Atacama Desert, has been the world’s top copper producer since its opening in 1990. In 2023, it produced 1.073 million tons of copper and is expected to maintain production levels of 1.08-1.18 million tons in 2024, according to BHP’s projections. Grasberg, situated in Indonesia, follows closely with 700,000 tons of copper output in 2023.
Global copper demand is on a sharp upward trajectory, driven by its key role in the transition to clean energy. Mining companies and financial institutions alike are fueling a copper price rally in 2024. Rio Tinto's Chairman Dominic Barton recently emphasized the mounting demand for metals critical to energy transformation, stressing that the world will need more mines to close the looming supply gap. This sentiment is echoed by BHP, which predicts that an additional 10 million tons of copper ore will be required annually over the next decade, necessitating approximately $250 billion in investment globally.
In the midst of this, several significant copper expansion projects are coming online. Chile's Quebrada Blanca Phase II and the Mantoverde mine are both ramping up production. Similarly, in Peru, expansions at Chalco's Toromocho and Minmetals’ Chalcobamba are expected to add tens of thousands of tons to global copper supply next year. Africa, particularly the Democratic Republic of Congo (DRC) and Zambia, remains a focal point for growth, with Kamoa-Kakula’s Phase III project set to contribute an additional 100,000 tons in 2025.
Despite the promising outlook, the global copper supply faces hurdles, including the lengthy development cycles of new mines and potential disruptions. Nonetheless, with demand increasing and new smelter capacities coming online, copper prices are expected to remain strong, incentivizing further investment in production.
