Mark Bristow, CEO of Barrick Gold Corporation (GOLD, Financial), expressed optimism about copper's future despite anticipated short-term price fluctuations due to upcoming U.S. tariffs. Barrick is expanding operations in Zambia, aiming to double the Lumwana mine's annual copper production to 240,000 tons by 2028, with a $2 billion investment extending its lifespan to 2057.
U.S. President Donald Trump announced a 50% tariff on copper imports, effective August 1, to bolster domestic industries critical to defense, electronics, and automotive sectors. This announcement led to a record high in copper futures on the New York Mercantile Exchange. However, analysts predict a potential price decline outside the U.S., as major copper producers like Chile may redirect supplies due to tariffs.
Bristow noted that while the U.S. tariff policy might have short-term effects, the long-term demand for copper remains strong. The supply shortage, coupled with increasing demand from data centers, clean energy transitions, and industrialization in emerging markets, underpins this outlook. Barrick's strategic investment positions it well to capitalize on the anticipated supply-demand imbalance.
