ArticlesCharteris in the Press

Why there won’t be a commodity ‘super-cycle’

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FE Trustnet article written by Abraham Darwyne as he looks to explore rival opinions on a commodity “super-cycle”. Charteris CEO Ian Williams is quoted in the article alongside peers in the industry.

He said there would be a five-year “mega bull market” for crucial commodities such as copper, where this supply imbalance has been prevalent.

“If you tried to get a permit to build a copper mine in America or somewhere today, you’ll probably find environmentalists objecting to it,” he said. “But hang on, you need the copper – without that without the copper, you don’t have your electric cars.”

Indeed, Rio Tinto and BHP’s proposed Resolution Copper project in Arizona, has been trying to get the necessary permits for almost 15 years. It is estimated that the project has the potential to supply up to 25% of all the US’s copper demand.

Williams said that car manufacturers might find themselves in a similar situation with copper or nickel as they found themselves during the semiconductor shortage last year.

Another problem with the supply of copper is that many of the big mines that produce the commodity have a finite supply, a big problem for the rise of electric vehicles and other eco-initiatives.

“The very point at which the government all these Western governments are targeting to make the big transition from petrol and diesel cars to electric cars almost coincides hand in glove with when a lot of these copper mines all start to go into quite serious decline,” he said.

He said South Africa’s gold supply was a good example of how finite of a resource metals can be.

“South Africa used to be the world’s predominant gold mining country by a mile,” he said. “But South Africa is nowhere near the world’s top gold producer these days because most of the gold is gone.

“The same thing is going to happen with the copper mines. They are finite resources.

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