A mining giant claims copper’s strategic value rivals that of gold, sparking market interest.

Earlier this week,Spot spot trading platform Barrick Gold released its second-quarter financial report. Analysts are closely monitoring the performance of major gold miners, especially given the context of current record-high gold prices, with significant expectations regarding these companies' profitability.

A few months ago, the price of copper, a key transition metal, reached $11,000 per ton. Goldman Sachs predicts that with the acceleration of the global electrification process, copper prices might further surge to $12,000 due to the current shortage of copper ore reserves. Consulting firm Wood Mackenzie also anticipates that by 2050, global copper demand will increase by 75%, which will undoubtedly drive investment in the mining sector.

Mark Bristow, CEO of Barrick Gold, stated: "The strategic importance of copper is comparable to that of gold. As gold mining companies evolve, the extraction of copper becomes increasingly critical. To maintain a certain scale, companies must seek out porphyry gold-copper deposits."

On August 17, market analyst Irina Slav raised a critical question in an article: Do Western countries have the capability to establish their own copper industry? She pointed out that the green energy transition in the West heavily relies on copper, with current processing mainly concentrated in certain Asian countries. She believes that building their own copper processing industry in the West is not only costly but also time-consuming, potentially hindering the energy transition process.

Slav further noted that Western governments might need to cooperate with Asian countries, or else they will face higher costs for renewable energy technologies.

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