• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 1 hour How Is Greenland Dealing With Climate Change?
  • 3 hours China Car Sales Plummet: Can Musk Unshovel His Groundbreaking?
  • 14 hours "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 7 hours How Much Oil Does Aramco Have?
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 2 hours BofA Sees Oil at $35-70
  • 5 hours Venezuela continues to sink in misery
  • 1 day Solid-State Batteries
  • 13 hours Spy&State: Huawei Founder Says Firm Does Not Spy For China
  • 13 hours Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.
  • 1 day protests in Canada over pipeline
  • 18 hours China's Exports Shrink Most In Two Years, Raising Risks To Global Economy
  • 1 day WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 20 hours Bolsonaro Wins in Brazil
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Copper Power is "On the Brink"

Creating a major mining district isn't easy.

First, it requires geological endowment. The right rocks to yield big ore deposits.

But that's not all. Big mining operations only happen where we have a populace that's relatively accepting of mining activity. And where infrastructure like power, water and roads are suitable to allow for large-scale development.

When it comes to copper, there's one place on Earth where these factors come together in just the right proportions: Chile. Massive porphyry deposits here lie alongside a sparse population and a well-developed industrial sector. Which is why the nation produced an astounding 32% of global copper output in 2013.

But changes are afoot for this mining powerhouse. Which may endanger its status as the world's go-to copper supplier.

The problem is energy. A sector that state officials said last week is verging on a major crisis.

Driven by falling hydropower production, and a lack of alternative generating methods.

Telling comments came from Senator Alejandro Guillier, chairman of the Senate Energy and Mining Commission. Who told Chile's national legislators that, "We are on the brink, and if urgent measures are not taken soon there will be rationing."

The country is now reportedly preparing an "emergency plan" for energy. Which should be released next month. Measures could include a greater role for the government in setting power prices nationally. As well as directives to enhance baseload power sources--with coal being mentioned as one likely source.

All observers of the copper market should be watching these developments. Mining is one of the most energy-intensive activities in the country. And could be one of the first sectors to take a hit if power rationing does become reality.

That would put a big chunk of global supply at risk. And even if existing operations can muddle through, future developments here could be crimped.

All of which would represent a major shift for the copper market. This could be the start of something big.

Here's to having the juice,

Dave Forest




Back to homepage

Trending Discussions


Leave a comment
  • jay kalend on May 17 2014 said:
    I hope you get more bloggers and exposure to this informative site.

    If "rationing" is in the works for Chile (is that of energy or copper?) it may be of a constructive kind. China is hoarding copper, playing an unconstructive role in promoting the ultimate user value of this metal, and not promoting more profitable and energy efficient manufacture of raffinate and products. There will be shortages to do neither China or Chile any good. Why not a tie-in tax or agreement to link production with the ability to sustain it? It would be similar to the late carbon tax on coal in Australia but it would be used to promote upstream development and diversification of copper related industries in the countries that produce it.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News