Recently, one of the larger mines in the worldbut it does not mean good news, this ignites the alarms of concern of countries and market as in Mexico, because we are facing risks due to ores of minerals and the consequences can be devastating for the international industry.
One of the world’s largest mines, threatens the world’s mineral markets
There was a finding between Border of Argentina and Chileit is one of the most ambitious mines in the world. But although it generates enthusiasm for the region and for the mining project, it also causes concern in the mining sector.
Considered as one of the larger copper mines in the world, the Vicuña district projectcould cause an oversupply in the production of this mineral, which impacts market prices, including Mexico (although the country’s mining is paralyzed by this phenomenon).
According to the estimates, the Filo del Sol mine and Josemaría are among the ten with the largest copper reserves in the world. Which allows the companies in charge to exploit more even if the prices fall.
It has about 12.8 million tons of measured copper and 25.1 million estimated tons. But it’s not all, it also has gold and silver deposits. All this gives this mine a potential to be exploited much broader than any other.
What implies this finding for mining exploitation?
Finding a mine with so much potential should be what everything expect, however, for the world market this news can be worrying. Mexico is a copper producer With popular mines such as Cananea, so this discovery would be competence and uncertainty in its market.
-While the global copper production increases, prices, by natural market rules, tend to lower, this affects the profitability of producers such as Mexico. However, experts say that copper demand will continue to increase in a sustained or stable in the long term.
The reason for this is that, the demand reaches 28 million tons, compared to 23 million tons of production copper. Which means that there is no overexploitation of the mineral, on the contrary, more production is needed to meet with the demands of the market.
Why do we use so much copper? The answer is due to the energy transition. The manufacture of electric cars and the growth of technology, require elements such as copper for conductivity and electrical networks. So for now, copper demand will continue to increase.
In this way and in figures the demand for world copper is maintained
Advances in technology allow copper to be a very precious mineral at this time. Since we got into the technological era, the Copper demand has been tripled from 1990where it was 8.1 million tons. For 2010, there were 19 million and currently 28 million.
Therefore, there should be no concern about the Vicuña project, since there is enough demand to meet without affecting the markets of other producers. Although the market is watched, because Mexico occupies the third place in copper production and maintaining that position is key.
Concerns about the discovery of One of the world’s largest copper minesthey remain but controlled. Vicuña promises to be a great producer and competition, but without exercising so much pressure on the profits of other regions. On the contrary, it could be an opportunity for Mexico to avoid a catastrophe in our environment for these machines and bet on sustainable mining.
