Bloomberg: Copper Deals Off to Best Start in 12 Years 1-25-18 Copper mining deals are off to the best start in at least 12 years and more money could be pouring into the sector this year. . . . Production trailed consumption by 175,000 metric tons in the first 10 months of last year, according to the International Copper Study Group. The deficit widened from 143,000 tons in the same period a year earlier, after a labor strike at BHP Billiton Ltd.s Escondida mine in Chile and a temporary ban on concentrate shipments from Freeport-McMoRan Inc.s Grasberg curtailed supply in the early part of 2017, the study group said. . . . Over the next decade, the market would need 5 million tons of copper from new mines to meet growing demand, Freeport CEO Richard Adkerson said Thursday, citing Wood Mackenzie estimates. New projects being developed have lower ore grade, he said. . . . The combined capital spending of copper producers tracked by Bloomberg Intelligence has plunged by more than half to $52.3 billion last year, from almost $129 billion four years earlier. The dearth of investments and the difficulty in finding lucrative projects meant less spending on acquisitions last year. The value of transactions pending or completed in 2017 shrank to $1.15 billion, from $3.03 billion a year earlier. Still, in terms of number of deals, the 51 transactions last year targeting copper assets were the most in Bloomberg data in at least 12 years. . . . Still, mining companies will be under heavy pressure to start buying new assets soon, especially with copper prices trading above $7,000 a metric ton for most of the past month. Copper valuations are disconnected from where copper prices will ultimately trade in the long run, Cosgrove said in a telephone interview. Assets are being valued based on copper prices below $7,000, when the cost of bringing in new capacity is much higher, he said. https://www.bloomberg.com/news/articles/2018-01-26/copper-mining-deals-off-to-best-start-in-12-years-as-prices-soar