Copper Shortage Threatens Green Transition
October 16, 2023

Challenges in opening new mines expected to leave production lagging behind rising demand

By Yusuf Khan

April 18, 2023 1:00 am ET | WSJ PRO


Metal markets seem to think copper is the new lithium. A lack of new mining activity has added to worries that there won’t be enough of the red metal for the energy transition, a popular topic at this week’s World Copper Conference in Santiago, Chile.


South America currently dominates copper production and Chile is the largest mined producer. Increasing mine output has proved a challenge, prompting a wave of deal making in the industry and warnings of a serious supply shortfall over the next decade.


Copper is used in wiring and construction as well as electric vehicles, solar panels and other green technologies. Electrification is expected to increase annual copper demand to 36.6 million metric tons by 2031, with supply forecast to be around 30.1 million tons, creating a 6.5 million ton shortfall at the start of the next decade, according to consulting firm McKinsey & Co. 


In 2021, refined copper demand stood at 25.3 million tons, according to the International Copper Study Group.


“The market overall is pretty tight,” said Robert Edwards, copper analyst at CRU. “Longer term there’s a narrative around resource scarcity and the green transition with EVs and renewables as well as the build-out of electricity grids. On paper it’s quite a substantial supply gap opening up over the next 10 years,” he added. 


However, “there’s no slack in the system, no buffer,” said Marex’s head of market analytics Guy Wolf at a recent conference in Switzerland. He said that copper was the only metal with locked-in demand growth, but indicated prices would need to rise to $15,000 a metric ton to attract investment in new mines. Futures on the London Metal Exchange are around $9,000 a ton.


Copper miners have been at the center of a recent spurt of deal making. Glencore PLC recently offered $23 billion for Canadian miner Teck Resources Ltd., potentially creating the third-largest copper producer in the world. Teck rejected the offer. BHP Group Ltd. also gained court approval on Monday for the takeover ofOZ MineralsLtd., a deal valued at $6.34 billion.


However, analysts say a lack of new mined resources is the main hurdle. Mined output globally in 2022 was 21.8 million tons according to the International Copper Study Group, rising only 1 million tons over the previous three years. 


Analysts forecast little output growth in Peru and Chile. Mines are operating at low staff levels and slowed operations after local protests from community groups, with reasons varying from worker safety to rising governmental control over mine assets. Research firm Fitch Solutions estimates that 2023 copper mined production in Chile will likely be about 5.7 million tons, the same volume as in 2020. 


“We now see some projects coming online in Peru and in Chile, which will add incremental supply, but there is not a lot in terms of pipeline in terms of long run,” said Barbara Mattos, an analyst at ratings company Moody’s Investors Service. She cautioned that the new ores being mined are of lower grades, meaning that even if mining activity stays flat, copper volumes produced are likely to be lower.


Potential new supplies could come from the rich copper seams in Congo and Zambia in central Africa. They are now being exploited. However, the largest deposits are still in South America. According to Congo’s Ministry of Mines, copper metal exports totaled 2.3 million metric tons in 2022, up from 1.8 million metric tons in 2021, less than half of Chile’s output. 


According to analysts it is more of a “when” not an “if” copper demand is likely to surge. “The question is how fast this transition will occur and exactly where,” said Ms. Mattos.


Green uses of copper accounted for 4% of copper consumption in 2020, but this is expected to rise to 17% by 2030, according to a recent note from Aditi Rai, an analyst at Goldman Sachs. He added a “net-zero emissions” path would mean the world would need an additional 54% of copper by 2030 on top of that forecast.


Changes in technology should ease some copper demand pressures. Mr. Edwards pointed to changes in battery packs already cutting copper usage in electric vehicles. He also said that Chinese construction isn’t likely to maintain the pace it has kept for the past 20 years, helping to somewhat offset green demand growth.



Write to Yusuf Khan at yusuf.khan@wsj.com


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Insider Loan to Corporation

September 15, 2025
TORONTO, Sept. 15, 2025 - VVC Exploration Corporation, dba VVC Resources, (“VVC”), (TSX-V:VVC and OTCQC:VVCVF) announces the following events. Loan from Chairman VVC’s Chairman of the Board, Terrence Martell Ph.D. (the “Lender”), has provided a US$700,000 loan (the "Loan") to VVC’s subsidiary, Plateau Helium Corp., for use in operating and developing its Helium/PNG assets in Kansas, USA. The Loan, secured by a Promissory Note, is payable on demand and bears no interest. The Loan contains a conversion option whereby, at the sole option and discretion of the Lender, all or any portion of the outstanding principal amount can be settled with up to 230,000 shares of Cyber App Solutions (CRYB) at a price of US$3.09 per share. Director Resignation Mr. Steven Looper has resigned as a director of the Company for personal reasons and his resignation was accepted by the Board with regret. VVC would like to thank Mr. Looper, who served the Company as director since September 2023. Jim Cuver, VVC CEO commented, that « VVC regrets Steve’s decision to leave the Board of Directors, but we understand the pressure for him to do so as he drives Proton Green to become a major player in both the helium and beverage CO2 production. Steve, we wish you all the best and stand ready to help you in any way we can. » No replacement director has yet been appointed. The vacancy will most likely be filled in the months to come or at the next shareholders’ meeting before the end of the year. About VVC Resources VVC engages in the exploration, development, and management of natural resources - specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel, and the expanding green economy. Our portfolio includes a diverse set of multi-asset, high-growth projects, comprising: Helium & industrial gas production in western U.S.; Copper & associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly-traded company on the TSXV (TSX-V:VVC). To learn more, visit our website at: www.vvcresources.com . Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

VVC Appoints New President & Grants Options

March 18, 2025
TORONTO, March 18, 2025 - VVC Exploration Corporation, dba VVC Resources, (“VVC”), (TSX-V:VVC and OTCQC:VVCVF) announces the following: Appointment of Officers The Directors appointed Mr. Bill Kerrigan as President and Chief Operating Officer of VVC. Mr. Kerrigan will continue to be President of Plateau Helium Corporation. Mr. James A. Culver will remain as CEO of VVC. VVC Chairman, Terrence Martell, commented, "As a representative of Management and the Board, I extend heartfelt gratitude to Mr. Culver for his years of service as President. I also welcome Mr. Kerrigan to his new role as President and I am confident that he will provide positive momentum for VVC." Option Grant The Directors also granted incentive stock options under its stock option plan, to officers, directors and consultants of the Company, to purchase up to an aggregate of 15,700,000 common shares, representing 2.74% of the outstanding shares of the Company. The stock options are exercisable at a price of CA$0.05 per share expiring March 17, 2035. 25% of the options granted will vest immediately with the remaining vesting at 25% every six months. The exercise price was fixed at the minimum allowable price by the TSX Venture Exchange policies. The options, granted in accordance with the provisions of the Company's stock option plan, are subject to the TSX Venture Exchange policies and the applicable securities laws. Of the Options granted, 41.1% were to Directors, 30.3% to Officers and 28.7% to Employees/Consultants of the Company. About VVC Resources VVC engages in the exploration, development, and management of natural resources - specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel, and the expanding green economy. Our portfolio includes a diverse set of multi-asset, high-growth projects, comprising: Helium & industrial gas production in western U.S.; Copper & associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly-traded company on the TSXV (TSX-V:VVC). To learn more, visit our website at: www.vvcresources.com. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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