Olivier Crottaz CEFA

Copper is the new gold. AI data centers are expected to double copper demand by 2040. It may be a $1T industry & there's a network of mines operating in the shadows to supply it. And the real owners might surprise you:🧵

The world is now demanding more copper than ever. Data centres, power grids and electric cars all run on it, and demand is forecast to grow even faster next year. A single large AI campus can need up to 50,000 tonnes on its own, ~50% of what a big copper mine produces in a year. But for the first time since 2017, the world's copper mines are set to produce less than the year before. And the reasons why aren't getting nearly enough attention. The first is accidents. Grasberg in Indonesia, one of the biggest copper mines on earth, has been held back since a fatal underground accident last September. Kamoa-Kakula in Congo is still constrained after its own problems underground in 2025. Between them, about 600,000 tonnes the world was counting on this year won't arrive. That's roughly 2.5% of global supply gone. The second is weather, and it keeps hitting the biggest mines. BHP's copper output fell 19% last quarter after bad weather and a fatal accident halted work at Escondida in Chile, the world's largest copper mine. The third is the slowest and hardest to fix: the ore is getting poorer. The big mines dig lower-grade rock every year, so they have to move more of it to get the same copper out. There's plenty of copper in the ground. Copper at good grades is what's scarce, and on average a discovery takes about 17 years to become a working mine. The world needs several new ones every year to keep up, and they aren't being found. Those 17 years have to start somewhere. At Coppernico (TSX: COPR, OTCQB: CPPMF) we're starting at Sombrero in Peru, where our best surface samples have run double the world’s average copper grade and drilling is expected to begin late this year. Follow me @IvanJBebek to stay updated with the journey.