Industry capex has halved

Copper industry majors have cut investment in both growth and maintenance

Between 2013 and 2016, capital investment in copper projects by industry majors fell 49% from just under $28bn to $14bn.

The lagged impact of the reduction in capex, combined with supply disruptions means that after growing by more than 3% for the past two years, copper mine production is now expected to fall in 2017.

Total copper capex of industry majors

Source: Broadhurst Mining Research analysis, based on company reports. Combined capital expenditure for eleven diversified global majors and copper companies. Together these companies produced 54% of total world mined copper in 2016