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1) According to experts, the global copper greenfield investment falls short of demand outlook. A greenfield is a project that has not broken ground, whereas a brownfield, is an existing mine that is operational or that was operational in the past. With the copper demand projected to skyrocket and estimates of a 6-million-ton deficit by 2030, mining giants have taken to huge merger and acquisitions. BHP has an offer to acquire Oz Minerals for $6.4 billion and Rio Tinto increased its share in the Oyo Tolgoi copper mine for $3.1 billion to capture this opportunity in the surge of copper prices. Chile's copper commission Cochilco, a mining ministry body, estimated in December that the price of copper will average $3.70/lb. in 2023, keeping it high compared to recent years. Investing in brownfield projects is the obvious choice as the operations don't have to fight permitting, governments and communities for years just to get started on mining. We have seen in recent months, environmental groups and communities protesting new mines, and the permitting process lasts anywhere from 5-15 years just to be allowed to start a mine. However, Fastmarkets’ Andrew Cole said “M&A and brownfield investment doesn’t address industry needs. They don’t change the supply-demand balance, and don’t add new tons for the industry.” In order for us to take the green transition seriously, we need to revamp the mining industry from how it is viewed to how it is treated.
Source: Global copper greenfield investment falls short of demand outlook, experts say - Fastmarkets
2) North America's top mining executives are bracing for a turbulent 2023 that points to a recession, more geopolitical risks, and an uncertain investment climate. The year "...is going to be seen as the start of serious change - in the way mines operate and are held accountable" according to Mark Bristow, Barrick Gold's CEO. "The scenario that's playing out across the globe is a very interesting dynamic, and honestly I don't think anywhere is perfectly safe to invest right now," he added. This past year had its own challenges as the problems should follow into 2023 as the war in Russia is still ongoing, surging input prices are not slowing down, and the demand for minerals is still strong. In 2023, we should see more demanding governments as we've seen in Chile and Peru as countries want to have greater control over their natural resources. Chile is in the middle of rewriting the tax codes for mining companies and Panama is battling over a copper mine within its borders. Mergers and acquisitions should continue as companies look to capitalize on the surging demand of these critical minerals. As mentioned above, mining giants are looking for brownfield projects that could squeeze out more copper to gain from the copper deficit. With worries of a recession, gold will see an increase in price as more investors look for safer investments. Gold mining companies will be sure to capitilize on this opportunity as well.