I support Jiangxi Copper’s pursuit of SolGold—even at a higher acquisition price.
Copper faces a profound structural imbalance between supply and demand over the next decade. We are entering an era defined by AI, electrification, and the green energy transition—all of which are incredibly copper-intensive. Think data centers, power grids, electric vehicles, and renewable energy infrastructure. According to open-source projections, global copper demand over the next 10 years could surpass the total amount of copper humanity has ever mined in history.
On the supply side, however, investment in new copper mining capacity has significantly lagged over the past decade, largely due to prolonged bearish market conditions. Developing a new mine is a capital-intensive, time-consuming process—often taking many years from exploration to actual production. Compounding the challenge are rising environmental and labor standards, stricter permitting processes, and growing administrative hurdles.
Recent events underscore this fragility: an Indonesian copper mine was severely damaged by a mudflow earlier this year, forcing the operator to delay its planned 2026 production start. Such disruptions highlight just how vulnerable global copper supply really is.
In this context, copper is becoming the “new industrial blood.” Jiangxi Copper’s bold move to secure high-quality assets like SolGold may seem expensive today—but it is a strategically sound investment that will likely be richly rewarded in the long term.
$Jiangxi Copper Company Limited(600362)$
Comments