Diversified supply lines

Copper is so important to global economies and growth, as well as societal goals, that it is vital that we create diversified supply lines to continue feeding growing demand. This is not only the diversity of organizations that provide copper, but also a diverse range of nations and operations from which the copper is mined. Here are four of the most salient reasons that it is important to maintain diversified copper supply lines.

Geopolitical risk
It is important that diversity reduces vulnerability to political instability, trade disputes and natural disasters. Relying heavily on a single nation for the global source of copper would make economies vulnerable to political instability or natural disasters in a single region. Equally, if you are relying on a small number of companies to deliver the world’s copper, poor management of said company could cause an international copper scarcity, driving up prices and preventing society from building the new copper-containing products that it needs.

Manage price fluctuations
Diversification offsets the impact of price swings in one specific market. Copper prices can be volatile, influenced by factors like economic growth, industrial activity and geopolitical events. By sourcing copper from various regions, some of these impacts can be offset when they occur only in one specific market.

Supports sustainable development
It promotes environmental regs and social responsibility standards. Sourcing copper from multiple places, including countries with strong environmental regulations and social responsibility standards ensures that the mining industry has to promote the sorts of sustainable practices that we believe in, and reduce the negative consequences as we extract the copper we need.

Meets growing demands
Diversification also addresses the increasing need for copper driven by factors like renewable energy and urbanization. As the world seeks to decarbonize and build sustainable infrastructure, copper needs are rising and a diversified supply chain is helping us as a society to reach these goals while mitigating risks.