We don’t always get a clear message about copper from the people who actually run the companies, but I recently got that chance. And it was encouraging I have to say.
The way most of the public hear about copper is from the media, messages that are filtered through a thousand different opinions, and geopolitical or market concerns. In other words we don’t always hear what the people at the top are actually saying.
So it was refreshing to see a bunch of CEOs from the world’s biggest copper miners—companies like BHP, Newmont, Rio Tinto and Anglo American for example—talking directly about things like supply and demand that was compiled by the International Copper Association.
It’s the question of the hour of course. How many articles have I seen saying the world is now in a copper crisis, fuelled by soaring global demand but with far too little new sources of ore to make any sort of dent in consumption—driven by too little exploration as well as the decline existing mines.
Sure it makes a good headline, but it might a bit too alarmist.
Upfront I think the central message from the copper C-Suite I got was that the industry has some unprecedented challenges but is tackling them with a new level of collaboration & partnership. For example Rio Tinto’s Jakob Stausholm said “We’re trying to find a win-win. I do think that’s in everyone’s interest. If we haven’t explained ourselves well enough, then we need to explain ourselves better.”
Tom Palmer of Newmont seemed to agree: “Building and maintaining relationships based on trust is going to be a central part of navigating through the new level of volatility”. Mike Henry at BHP suggested miners need to explain the industry’s importance better “but that all needs to start with the industry setting and upholding higher standards”.
The need for the copper industry to set high standards together was certainly a consistent message. For example Mark Bristol at Barrick Gold added—“having one standard for responsible mining will not only provide clear direction……It is also crucial that this standard has multi-stakeholder oversight.”
I guess the other key message was how upbeat all these CEO’s are about the industry going forward. “Copper shines as brightly as gold in these times” said Roque Benavides at Buenaventura, while Duncan Wanblad of Anglo American added “The prospects for mined products have rarely looked better.”
Cheers, John Fennell