Video News/Digging Deep

Joe Mazumdar, editor of Exploration Insights, says copper’s supply challenge is increasingly structural, as falling grades and rising capital intensity weigh on major producers. Speaking with Kitco Mining’s Digging Deep, Mazumdar said Rio Tinto’s decision to abandon talks with Glencore reflects a broader reality: “it’s almost cheaper to merge and generate more copper for the combined entity than it is to build a new project,” underscoring how difficult and expensive new mine development has become. On gold, Mazumdar cautioned that higher prices do not eliminate underlying risk. With spot prices above $5,000 per ounce and many companies still using reserve prices averaging about $1,660, he said valuation gaps may be emerging, but warned that “the gold price may not change that” if a project has a fatal flaw. The discussion also addressed Barrick’s planned North American IPO, processing bottlenecks in critical minerals, and how security risks can intensify in stronger commodity markets.