Fitch report forecasts increase in copper production in the DRC with more than 3 million tonnes per year expected from 2031
In a new report, Fitch Solutions Country Risk and Industry Research predicts that copper production will show “strong and steady” growth for the next decade both in the Democratic Republic of Congo and in other major producers such as Chile and China.
This study estimates that 7.3 million tonnes of copper will be added to global copper production by 2031 as a series of projects in Chile, China and the DRC come into production.
In the case of the DRC, this international rating agency points out that thanks mainly to the expansion of the giant mining complex Kamoa-Kakula (of Ivanhoe Mines and Zijin Mining), the annual production of copper will for the first time exceed the 2 million tonnes in 2023 and will reach almost 3 million tonnes in 2031.
Among the companies that will contribute to this production volume are Glencore’s restart of the Mutanda copper-cobalt mine and China Minmetals’ Deziwa project, owned with state-owned Gécamines? This will inevitably have an impact on economic growth in the DRC.
Overall, Fitch expects global copper mine production to grow at an average annual rate of 3.2% over the period 2022-2031, with annual production increasing from 21.9 million tonnes in 2022 to 29.2 million tonnes in 2031, driven by high copper prices and a positive demand outlook.
The price of copper has fallen since hitting all-time highs in March and last traded at $3.28 a pound ($7,230 a tonne) in New York, a 10-week low.
Sold in recent weeks below $8,000 a ton, Fitch expects copper prices to average $8,400 a ton in 2023 and $11,500 a ton by 2031.
