Whether or not to invest in gold is a different debate, but there’s no denying that the metal that’s going to be the next big thing is copper. Vedanta Group Chairman Anil Agarwal, has, in fact, said that we are now entering the ‘New Copper Age’.
“Copper has a very close association with the advance of human civilisation, and our ancient India. Around 6,000 years ago, the Indus Valley Civilisation, one of the world’s first great civilisations, came up in the Copper Age, when we learnt to use the red metal for the first time. I believe we are now entering a New Copper Age,” he said, adding that all the technologies of the future, including artificial intelligence or energy transition are all underwritten by massive amounts of copper.
India can become the global leader in copper, he said. “We have the human resources, natural resources and tech capability. Our future will be as prosperous and glorious as our ancient past,” he said.
It is not only Agarwal, analyst Sujay U said copper is the metal that might reshape wealth in the next 5-10 years. He too argued that the world cannot build its future without it.
Indeed, copper is critical to electric vehicles, solar panels, charging stations, power grids, and data centers and is used widely across the globe in power generation, electronics and construction.
In fact, the US has included copper in the list of 10 minerals that it deems essential for the US economy and national security. The Trump administration plans to boost domestic mining and cut reliance on imports.
Meanwhile, Grasberg, one of the world’s largest copper mines in Indonesia, has been affected by floods and accidents. This has raised concerns about a production shortfall of over 600,000 tons by 2026. Opening a new copper mine typically takes 10 to 15 years. Existing mines are either running dry or facing declining ore quality. These factors have caused alarm in the market.
Copper prices recently surged by 3 to 3.5 per cent in a single day due to supply concerns. Goldman Sachs and Citi have forecasted copper prices to reach between $11,000 and $14,000 per ton in the coming years, indicating a possible 20 to 50 per cent increase in price.