Rising Demand for Copper Spurs Exploration and Expansion Efforts
Amidst heightened demand driven by the rise of artificial intelligence and increased consumption in the tech sector, copper supply remains a focal point of global interest. Earlier this year, Forbes highlighted a looming showdown between the United States and China over dwindling copper resources, with prices soaring. Although copper prices have dipped slightly in recent months, analysts remain optimistic about the long-term outlook, with Citigroup predicting further price increases. The U.S. copper supply is expected to grow by 4% in 2024, with additional contributions from major copper miners, including Usha Resources Ltd., Southern Copper Corporation, Metals Acquisition Limited, Taseko Mines Limited, and Ero Copper Corp.
Usha Resources Ltd. has entered the copper market by securing an option to purchase a 100% interest in the Southern Arm copper property from Abitibi Metals. This strategic move follows Usha's decision to divest up to 90% interest in its Jackpot Lake lithium asset for $26.025 million, representing a return on investment of over 1,300%. Usha's expenditure on acquiring and developing Jackpot Lake since 2022 was approximately $1.835 million.
Wasting no time, Usha commenced fieldwork in August on the drill-ready Southern Arm Copper-Gold VMS Property, as part of its agreement with Abitibi Metals to earn 100% ownership over two years. The property is located in the Abitibi Greenstone Belt and features a 7.3 km conductive copper-gold trend along the regional Bapst fault within the volcanic rocks of the Brouillan-Fenelon Group. The nearby Selbaie Mine and Abitibi Metals' B26 Deposit demonstrate the area's rich mineral potential.
Deepak Varshney, CEO of Usha Resources, expressed enthusiasm about applying modern exploration techniques to penetrate the overburden cover that has deterred previous explorers. He stated that the Southern Arm property is well-positioned for a major discovery, with the exploration program set to finalize drill targets within the Hollywood Trend, prior to the maiden drill program planned for this fall. The biogeochemical survey aims to identify additional targets for high-grade gold and copper mineralization.
Southern Copper Corporation reported a 35.5% year-over-year increase in net sales for Q2 2024, reaching approximately $3.12 billion. Copper sales volumes rose by 5.5%, with production increasing by 6.6% quarter-on-quarter to 242,474 tons. SCC has resumed operations at its Tia Maria project in Arequipa, Peru, expected to produce 120,000 tons of copper cathodes annually. SCC Chairman German Larrea highlighted that the Tia Maria project is projected to generate $17.5 billion in exports and contribute $3.4 billion in taxes and royalties over 20 years. The economic benefits will be used to improve productivity in Islay, particularly in agriculture, as well as to enhance health and educational services in the Arequipa region.
