With the price of copper soaring to record highs and becoming more coveted than platinum or diamonds, the red metal is experiencing a resurgence in demand and value. The energy transition towards renewable sources has played a significant role in driving up the price of copper, as it is essential for wiring solar panels, wind turbines, and batteries for electric vehicles.
Australian mining giant BHP has set its sights on acquiring competitor Anglo American, particularly for its copper mines, in a bid to create a global powerhouse in copper production. The increasing demand for copper, both for green energy applications and traditional uses like construction, has put pressure on production to keep up.
In contrast, platinum and diamonds are facing challenges in the market. Platinum, used in catalytic converters for combustion engines, is losing value due to the electrification of the automobile sector. Anglo American is considering divesting its platinum and diamond assets in favor of focusing on copper, anticipating the decline of these precious metals.
The diamond industry is also facing difficulties, with lab-made diamonds becoming a more cost-effective and ethical alternative to natural stones. De Beers, once a dominant force in the diamond market, has seen a decline in sales and profits, attributed to competition from synthetic diamonds and ethical concerns surrounding “blood diamonds.”
As the global mining industry experiences shifts and challenges, the rise of copper as a valuable commodity highlights the changing landscape of the market. Investors and industry experts are closely monitoring these developments as companies like BHP and Anglo American navigate the complexities of the evolving market dynamics.
