Latin America and the Future of Copper Mining

Latin America and the Future of Copper Mining

On Wednesday 4 December, Canning House and Anglo American convened their third-annual Mining conference, centering on the theme Galvanising Change: Unlocking Latin America’s Copper Potential, bringing together industry leaders, policymakers, and experts to explore the evolving landscape of copper mining and its role in powering the global economy.

The conversation spanned critical issues, including the rising demand for copper, the role of technological innovation, sustainability challenges, and geopolitical dynamics shaping the industry.

The event began by highlighting copper's indispensable place in modern economies. Participants underscored the material's pivotal role in creating physical capital stock and supporting global economic output. As one speaker noted, the transition to a sustainable and equitable future requires an unprecedented scaling of copper production—potentially quadrupling all copper ever mined. However, current project approval processes and ore grade declines pose significant bottlenecks.

While the rising demand for copper is fuelled by diverse sectors – ranging from renewable energy to data centres – concerns were raised about the impending supply shortage and the inflationary pressures tied to mining deeper and lower-grade deposits. This dynamic, it was argued, necessitates both higher prices and an accelerated discovery of new reserves.

The geopolitical implications of copper mining were a focal point. Participants noted that while critical minerals are climbing the policy agenda in regions like the UK and US, copper has not yet received the strategic prioritisation it warrants. US government efforts, it was suggested, may increasingly focus on Latin America, given its established partnerships and projects under development. However, speakers cautioned that political instability, regulatory challenges, and community resistance could undermine the region's potential to bridge the global supply gap.

In the UK, it was observed that a lack of government investment in critical mineral strategies places the country at risk of falling behind. Speakers expressed hope for a shift with upcoming policy reforms, emphasising the need for both private and public sector collaboration to stimulate mining and processing capacity.

Technological innovation emerged as a critical tool for addressing the challenges facing the copper industry. Discussions explored the role of artificial intelligence in accelerating exploration and improving operational efficiency. Advances in AI-powered permitting, "accurate mining" techniques, and data-driven processing optimisation were highlighted as ways to reduce waste and enhance returns. However, access to reliable, high-quality data was identified as a persistent barrier, particularly for junior operators.

Sustainability was another central theme. Speakers examined the industry's ongoing efforts to address water use, tailings management, and biodiversity preservation. Innovations in dry tailings and water reuse were celebrated for their potential to mitigate environmental risks, though concerns were raised about the high costs of implementation. Participants emphasised the importance of equitable water stewardship, multidisciplinary approaches to resource management, and fostering community trust through transparent benefit-sharing frameworks.

Latin America, home to some of the world’s richest copper reserves, was recognised as a critical player in the global supply chain. Stable political regimes and fair contracts were identified as key to attracting investment, but permitting delays, regulatory inefficiencies, and a skills gap were flagged as obstacles. The region's ability to balance local community interests with national development goals will be pivotal in ensuring its continued leadership in copper production.

The discussion concluded with a focus on the role of international financial institutions in supporting sustainable mining. Participants highlighted the importance of cross-sector collaboration to amplify the fiscal, social, and environmental benefits of mining. It was suggested that improving the communication of these benefits to stakeholders could enhance public perception and build stronger support for the sector.

The event offered valuable insights into the pressing challenges and opportunities facing the copper industry. It underscored the need for a holistic approach—one that combines technological innovation, sustainable practices, and robust policy frameworks—to meet rising global demand while fostering equitable and sustainable development.

Canning House thanks Anglo American for its continued partnership and support; the participants at the Galvanising Change conference for their insights; and our audience for their engagement and interest.