A widening copper supply deficit could eventually force the development of smaller deposits that would previously have been considered uneconomic, said Absa Corporate and Investment Banking head of resources and energy coverage Shirley Webber.

Speaking in the second episode of Creamer Media's IN FOCUS copper series (click here to watch), Webber said the copper market was likely to remain in deficit for the medium term as demand linked to electrification, renewable energy and broader economic development continued to outpace the industry's ability to bring new supply on line.

She also noted that mining companies were increasingly prioritising expansions of existing operations rather than developing entirely new mines. Faced with lengthy permitting processes, rising capital costs and growing technical complexity, many management teams were focusing on debottlenecking projects, improving operational efficiencies and incorporating technologies and renewable-energy solutions to enhance productivity and sustainability.

The preference for brownfield growth reflects the challenge of bringing a new copper mine into production.

"It can take anything from 10 to 15, 18 years for a mine to be developed," Webber said, pointing to exploration, feasibility studies, permitting and mine construction as major contributors to project timelines.

The result is a market in which supply is struggling to respond to growing demand, despite strong long-term fundamentals and positive pricing signals.

However, Webber believes those same supply constraints could ultimately change the economics of project development.

As copper deficits deepen and prices strengthen, smaller deposits that may previously have failed to attract investment could become increasingly viable.

"Even smaller deposits will be mined because of the deficit that is out there," she said.

She added that equity partnerships and consolidation could play an important role in unlocking these resources, particularly in Africa, where growing global demand for energy-transition minerals is increasing interest in copper assets.

Looking at future supply sources, Webber identified Chile and Peru as the dominant copper-producing regions globally, while Zambia, the Democratic Republic of Congo, Botswana and South Africa remain important contributors on the African continent.

She argued that regional beneficiation would become increasingly important if African countries are to maximise the value of their mineral resources and ensure long-term sustainability across the copper value chain.

Webber said meeting the copper requirements of the energy transition could require between $250-billion and $300-billion in investment globally, highlighting the scale of the challenge facing the industry.

"Copper supply will definitely be a problem," she said. "Demand is outstripping the supply as we speak."

The interview formed part of the second episode of Creamer Media's five-part IN FOCUS series examining the demand, supply, geopolitical and investment trends shaping the future of the copper market.