The mining industry has shown great efficiency in supplying the growing demand for copper that is associated with population growth in this century, said Michael Doggett, senior consultant at Michael Doggett & Associates, during the conference "Transforming mineral resources for a sustainable future: lessons from the first 20 years of the new millennium", on the fourth day of activities of the 12th International Congress of Prospectors and Explorers -proEXPLO 2021.

According to Doggett, while population growth in the 2001-2020 period averaged 1.19% per year, copper production in that period grew at an average annual rate of 2.14%. This scenario will continue in the 2020-2040 period, with an average annual population growth of 0.82% compared to 1.48% in the case of copper production.

This situation represents a challenge for the mining industry and coincides with the analyses being made by other analysts and consulting firms regarding the great demand for the red metal that will have to be met in the coming decades. Doggett was optimistic about the industry's performance, as it has been successful in turning mineral resources into reserves.

Another detail to consider is the direct relationship between copper price and copper exploration mentioned by Doggett, which may indicate exploration budget increases in the current situation of red metal prices around US$4/lb.

The specialist was also confident that the industry needs to adapt to the changes occurring in the world that demand new methods for ore processing, particularly if we take into account that the ore grades of new deposits are lower than those that existed two decades ago.

The panelists who also participated in this special edition of Jueves Minero, organized by the Peruvian Institute of Mining Engineers (IIMP), agreed with the analysis made by Doggett regarding the future of mining; although they warned about the particularities of Peruvian mining.

Silvia Rosas, professor at the Pontificia Universidad Católica del Perú and former president of proEXPLO 2019, stated that Peruvian mining companies must bet on a circular economy; while the State must also address the old environmental liabilities generated by old technologies.

Alberto Arispe, General Manager at Kallpa SAB, posed the scenario where there may be substitutes for a product whose price increases significantly. "I believe in the market and of course when prices rise significantly, substitutes will be found, but I don't think nickel can reach US$ 100,000 per ton," responded Doggett.

Ángel Mondragón, member of the organizing committee of proEXPLO 2021, said that it was clear that in recent years the mines that have entered feasibility and construction have lower grades. In fact, Doggett pointed out that of the 10 large projects mentioned, only three are projects that have grades above 1% copper content; while the other six have grades between 0.4% and 0.6%.