While the world spends an inordinate amount of focus on oil production, a senior global mining official says the long-term, more essential investment opportunities lie in mining for copper, silver and gold.
Tim Moody, CEO of Pan Global Resources, says the growth potential for oil is slow in comparison to the impact of copper-silver-gold production due to the myriad of supply chain roles these minerals play in the global transition to clean energy and electrification.
Moody says copper’s superior electrical and thermal conductivity make it an essential material in renewable energy systems and electric vehicles, while silver is an important element in AI system development.
At the same time, Moody cautions that copper mine supply growth is constrained by reserve depletion, falling grades, and a lack of new discoveries.
He says the industry is forecasting an annual copper supply deficit approaching 10 million tonnes by 2030.
The current global capital mining market challenges are the topic of discussion that Moody is engaging in on a tour across North America this month, including a stop in Kelowna on Friday, April 17, sponsored by the Pretium Capital Group.
Moody says the copper mining situation is dire because of the incredible range of multiple uses the mineral provides, coupled with a dwindling supply that could be kick-started with more exploration.
Getting a mine off the ground takes years and billions of dollars, which is where the investment aspect enters the conversation he is addressing on this speaking tour.
His company is currently exploring for high-grade copper, gold, and tin in northern Spain. To date, the exploration team has made three discoveries – a copper-tin-silver near-surface deposit, a copper-gold deposit with significant expansion potential, and the first major gold discovery in 30 years in Spain.
Several issues have limited copper exploration, in particular in recent years, from low copper prices to Indigenous land rights issues and unstable foreign governments.
“I think exposing this issue to the world is important, for if we don’t do something dramatically to increase exploration, we will be walking off a cliff,” Moody said.
“The world still needs all three of these minerals, and it takes time to find them.”
Moody has more than 30 years of experience in the mining industry, including mineral exploration, resource assessment, business development, strategy, and government relations.
Moody sees a major upside in investment return because of those essential needs, which is also reflected in the ubiquitous advertising for gold and silver investment currently on cable news channels like CNN, Fox News, and MS NOW.
He says increased military spending overlooks the vulnerability that countries can face if critical mineral exploration is not amplified.
“These metals are not just critical, they are essential, and we currently rely on supply chains and sources in areas that are high risk and could be cut off at any time,” Moody said.
The example of that in oil supply is currently being played out in the war between Iran and the U.S., as cutting off oil shipments through the Strait of Hormuz from oil-producing countries like Saudi Arabia, Oman, Iran, and Qatar has caused an immediate negative global impact.
“If we can’t ensure or guarantee a secure supply of these particular minerals, it becomes less about the price of copper and more of a national security aspect,” he said.
Moody says B.C. remains an exploration land base of high interest to mining companies.
“One of the criteria you look at for mining investment is, can you work on the land, can you get the permits to build a new mine, and how secure are those permits?” he said.
“You don’t want to face the high risk of a nationalistic government taking over a mine…and some countries are generally less supportive of mining.
“So you want to operate in areas of the world where mining is welcomed, and permits are reasonable and secure.”
He says B.C. offers many of those investment security questions, but one negative remains – questions about Indigenous land rights, something Moody says is encountered in other nations across Europe and in Australia.
“Something has to be done to resolve those issues before a company is going to make a multi-billion-dollar investment in a large mine,” he said.
Mining projects in B.C. often face environmental and Indigenous rights concerns that can affect timelines and approvals.
A current mine approval dispute involves Hudbay Minerals, and the provincial government recently announced permit approvals for expanding Copper Mountain Mine, but that decision has been criticized by the Upper and Lower Similkameen Indian Bands for not seeking their consent for the proposal, calling it a “unilateral” decision.
The Indian Bands issued a shared statement stating they had never given their consent to the proposal and expressing their disappointment with the province’s decision to approve the mine expansion.
He noted that as prices rise in minerals like silver and copper, new technology developments are causing some investors to revisit old mines to extract some value that was not evident 20 or 30 years ago.
Key trends in B.C. mine restarts are :
•Re-mining Waste: Companies are returning to old sites to re-process tailings and waste rock, looking for critical minerals that were overlooked in previous decades.
• Technology & Demand: Newer technology and higher demand for critical minerals (copper, gold) are making old, closed projects economically viable again.
•Indigenous Partnership: Projects like Eskay Creek are setting new precedents for “consent agreements between the provincial government and First Nations.