COPPER
demand, while the rapid expansion of AI and the massive build-out of data centres are creating additional sources of long- term consumption. Almost everything associated with greater electricity use ultimately requires more copper. “For us, that means we don’t have to speculate about short-term market cycles. The long-term demand outlook is well supported, making copper a strategic metal that is likely to remain essential to the global economy for decades,” he adds. For the junior miner, copper’s strategic importance could strengthen project financing prospects while creating potential M&A opportunities. Although building a mine remains an option, Welschinger says as a significant discovery it will likely attract interest from mining majors seeking long-term copper supply. Will the slew of new entrants create a future glut in the market? “I don’t believe we are heading towards a glut of copper supply. It is true that higher copper prices and stronger valuations for junior explorers are encouraging more companies to enter the fray, stake ground and pursue exploration opportunities. We are seeing this across both the Kalahari Copper Belt and the Central African Copperbelt. However, the reality is that copper exploration remains extremely challenging. While juniors are often more effective explorers than larger mining companies, the success rate of exploration is still extremely low. The increase in the number of junior companies looking for copper will not materially change the global supply outlook over the next decade.” According to Welschinger, even when a major discovery is made, the timeline from discovery to production is measured in years, not months. A genuine Tier One copper discovery typically takes 10 to 20 years to become a producing mine. However, the bigger issue facing the copper market is the challenge within the existing supply base. The major producers that currently account for the majority of global copper production are dealing with declining grades, ageing mines, shorter mine lives, and operational challenges including environmental pressures and labour disruptions. “In many cases, new discoveries by junior explorers will not arrive quickly enough—or at sufficient scale—to offset these structural supply challenges. That is why the long-term outlook for copper remains so compelling: demand continues to grow, particularly through electrification and emerging technologies, while the industry is struggling to bring new supply online,” concludes Welschinger. n
Almost everything associated with greater electricity use ultimately requires more copper.
have a responsibility to the company and our shareholders to understand what could be achieved with larger strategic partners, particularly given that several counterparties have approached us expressing interest in wanting to evaluate the opportunity. Our approach is straightforward: we are willing to listen and consider proposals if they deliver compelling value for shareholders. If they don’t, then we are equally comfortable continuing to advance the asset ourselves and creating value through exploration.” Why copper is a great bet According to Welschinger, copper has always been one of the company’s preferred strategic metals because of its exceptional long-term fundamentals. “It is already a mature, highly liquid commodity with a large, well-established global market and has long been regarded as a barometer of the global economy.” Moreover, beyond traditional drivers, demand for the commodity is also being reinforced by powerful structural trends. The global shift towards electrification is significantly increasing
20 MODERN MINING www.modernminingmagazine.co.za | OCTOBER 2026
Made with FlippingBook flipbook maker