Cape Town: Red metal producer Copper 360 chief executive Jan Nelson confirmed today that the company will list on the AltX board of the Johannesburg Stock Exchange this month. The company offers the only pure copper play to investors on the JSE.
Nelson said that the future of copper, as a primary driving force and bedrock of the global move to a green economy, continues to fuel long term upside.
He said: “The demand for copper is significantly outpacing the current supply, with a deficit of 5 to 8 million tonnes. This gap is expected to grow to 35 million tonnes in the next 15 years. The scarcity of copper is reflected in the rising prices, and with the need to produce 700 million tonnes of copper in the next 22 years, prices are expected to continue to rise.”
Its critical role in the green revolution and infrastructure development makes it a valuable commodity. The deficit in copper supply versus demand and the need to produce 700 million tonnes of copper in the next 22 years will lead to a continued rise in copper prices.
Simply to meet Europe’s target of 30% electric vehicles by 2040, there will be a need for another third of that amount in wind turbines and other infrastructure.
He noted that China’s recent lockdown had a temporary impact on copper prices, but the mere mention of China coming out of lockdown led to a rise in copper prices by almost $2,500 per tonne. He pointed out: “This is a clear indication of the scarcity of copper and the high demand for it.”
According to the World Bureau of Metal Statistics, the global copper deficit has been growing steadily in recent years, reaching an estimated 184,000 metric tons in 2021. By 2023 it said that the gap could rise to several million tonnes by the middle of the next decade and added that the increasing demand for copper in various industries, including construction, transportation, and renewable energy, has put a strain on existing supplies.
The Northern Cape copper district in South Africa, with its rich deposits of copper ore, presents a significant opportunity to address the deficit and drive economic growth in the region. The company is expected to revitalise the copper district in the Northern Cape in South Africa and will play a significant role in meeting this demand.
The development of Copper 360 in the region is not just good for the company, but it is also good for the community and the country as a whole. Said Nelson: “The company has employed over 280 people in the last two years and intends to employ another 1000 people in the next two years, creating jobs and economic activity in an area where the majority of the population is unemployed.”