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1) According to Gianni Kovacevic, Founder of LithiumBank Resources, over the next decade, copper will be going as high as $10 per pound, compared to the current price of $3.91 per pound today. "We are going [into] a commodity supercycle, especially with things that feed into the future of energy," he said. "There is an ongoing pivot to electrification. The greener and cleaner the energy that is created, transported and utilized, the more there is demand for copper... You could see copper at either $9 or $10 per pound on an inflation-adjusted basis." Copper is used 5 times as much in renewable energy systems such as solar, wind and hydro compared to the traditional sources of energy such as oil and natural gas. Mr. Kovacevic also praised lithium as a "magic ingredient" in the move towards electrification. Lithium is primarily used to store energy in batteries especially when it comes to electric vehicles, solar panels and wind turbines.
Source: Copper could reach $10 as markets gear up for 'commodity supercycle' - Gianni Kovacevic | Kitco News
2) A Chilean congressional committee approved a controversial mining royalty bill, putting the bill one step closer to a final approval of the sweeping tax reform. Chile, the world's largest producer of copper, presented a new reform to increase royalties on copper sales in the middle of last year when a new government was elected to power. The mining industry criticized the move, saying that many future investments were put into question and could be redirected to other projects in their portfolios. Following the approval by the mining and energy commission, the bill goes to a Treasury commission, where it will again be reviewed and need approval before it goes to a final vote. "The tax rate is a formula that has not convinced all of us," said Senator Loreto Carvajal, president of the mining commission, during the session. "The issue of our future competitiveness in relation to nearby countries and others is still pending."