Driving the news: The latest mineral mega merger, between Anglo American and Vancouver-based Teck Resources, comes as copper is set to play a critical role in the coming decades. Demand for the mineral is estimated to jump 70% by 2050, with many fast-growing industries, including the AI sector, driving the increase.
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Copper is used in more products than you’d think. AI data centres, fighter jets, and consumer electronics all require the mineral.
Catch-up: In two years, the industry will shift from a surplus of 162,000 tonnes in 2025 to a deficit in 2027. That deficit will keep on growing and hit 1.8 billion tonnes in 2035. NATO’s goal of 4% GDP defence spending and China’s larger military buildup will also be a big factor.
Why it matters: While Canada is not a major copper producer, the sale of Teck to a foreign competitor means Canada will no longer have its own global metal company. That means the country could potentially miss out on a key growing industry in the midst of championing made-in-Canada companies.
Zoom out: The mineral has played a small but important role in Canada’s tariff struggles. The U.S., which accounts for the biggest share of Canadian copper exports, backtracked on planned tariffs targeting unprocessed Canadian copper in July.—GS