Copper prices rebounded this week after U.S. Federal Reserve Chair Jerome Powell signaled another quarter-point rate cut. The comments sent copper up as much as 1.8%, rekindling optimism about a $12,000 a ton price point.
The recent market dynamics are causing the metal to trade increasingly on its own fundamentals. In comparison, copper used to serve as a simple proxy for economic strength. While global growth concerns and tariff risks still weigh on sentiment, analysts say the market’s attention has shifted toward structural shortages and long-term electrification demand.
Consultancy Wood Mackenzie expects global copper demand to surge 24% by 2035 to 42.7 million tons per year. They warned that the mine supply is failing to keep pace.
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“The world is heading toward a significant structural deficit,” the firm said, citing a lack of new projects and rising disruptions.
That bullish long-term outlook is prompting producers to revisit previously producing assets, much as the gold industry has done in recent years. Reopening old mines, or reprocessing tailings from shuttered operations, offers a faster and cheaper path to new supply than building greenfield projects from scratch.
While a new copper mine can take over a decade to permit and develop, restarting a historical site requires less capital. Existing infrastructure, power connections, and community relationships are all already in place.
The world’s largest miner, BHP (NYSE:BHP), is following that path in Arizona. The firm is considering reopening four long-closed mines at the heart of the U.S. copper industry. Chief Executive Mike Henry said that policy shifts under President Donald Trump spurred BHP to reassess dormant assets.
“The more supportive attitude towards mining and the urgency behind getting mining up and going is a very welcome shift,” Henry told the Financial Times. “The sector has never been more in the spotlight.”
The potential revivals would focus on the Globe–Miami region, where BHP also plans to reprocess tailings from past operations. Among the assets under review is the Magma mine, acquired in 1996 through BHP’s purchase of Magma Copper.
The mine’s surface area now anchors the Resolution Copper joint venture with Rio Tinto (NYSE:RIO). Resolution is one of the largest undeveloped copper deposits in the world, yet it remains in limbo owing to environmental and cultural risks.
Once operational, Resolution could supply roughly 25% of U.S. copper demand, strengthening domestic supply chains and reducing reliance on imports from politically sensitive regions.
Price Watch: Global X Copper Miners ETF (NYSE:COPX) is up 66.31% year-to-date.
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