Copper prices have doubled in recent times, reaching $10,762 a metric ton earlier this month. Other commodity prices have also rocketed. Whilst this bodes well for the Zambian mining industry specifically, global miners just aren’t throwing cash at new projects, raising concerns about future shortages of some metals.

Capital spending is set to fall by 6% among major diversified mining companies and 10% among copper miners this year, according to analysts’ consensus.

Capex spending is also a positive contribution to the economy.

The consequence of this interesting scenario, is that Copper prices are expected to continue to rise, driven by an expected expanding  shortage of supply of this commodity considered a “technology” metal and where demand is further driven by “green” technologies impact.

This lack of appetite from investors is believed to be a consequence of shareholders in recent times now seeking dividends to be returned to them, after seeing companies burn through cash in the last commodity bull run.

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wsj.com