• Chile is the leading producer of mined copper, with an estimated 24% of global mine production in 2022.
• Following Chile are Congo (10%), Peru (10%), China (9%) and the United States (6%).

Source: U.S. Geological Survey 2023 Mineral Commodity Summaries.

• The Escondida Copper mine in Northern Chile is the largest copper mine in the world.
• The mine is located in the Atacama desert at an elevation of 10,000 feet above sea level.
• According to owner BHP’s 2022 annual report, the Escondidada mine:
  • • contains 27 billion tonnes of ore at an average grade of 0.52 per cent.
    • is targeting average annual production of 1.2 million tonnes over the medium turn.
    • has a medium term cost guidance of $1.15 per pound.
• Mine Ownership:
  • • BHP (57.5%)
    • Rio Tinto (30%)
    • JECO Corp (12.5%) – A Japanese JV majority owned by Mitsubishi
• The mine grade has been in decline. BHP notes that for fiscal year 2022, “Escondida copper production decreased by 6 per cent to 1,004 kt primarily due to concentrator feed grade decline of 4 per cent.”

BHP’s FY 2022 Annual Report

Electric Vehicles

• • An EV uses more than twice as much copper per vehicle as a traditional car (see above).

Transmission

• • The cables and transformers used by electrical transmission rely on copper.

Renewables

• • Copper is also used to make solar PV cells and wind turbines.

• There are widely traded copper futures contracts on both the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME).
• The CME contract is quoted in USD per pound, with a lot size of 25,000 pounds.
• The LME is quoted as USD per tonne, with a lot size of 25 tonnes. 

CME Copper Futures Spec

LME Copper Futures Spec

1 tonne = 2205 pounds