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Copper's positive long-term trajectory remains unchanged despite US tariffs, Barrick CEO states

Mark Bristow, CEO of Barrick Mining Corp, said that copper miners are still optimistic about the future prospects of the metal, despite a 50% tariff looming in the United States, which will cause short-term volatility. The company is expanding operations in Zambia.

U.S. president Donald Trump announced on Wednesday that he will impose a new copper tariff starting August 1, to encourage the domestic development of a critical industry for defence, electronics, and automobiles.

The announcement pushed U.S. Comex Copper Futures to a record high.

Analysts predict that prices outside of the U.S. may be affected as countries such as Chile, which is the top copper producer in the world and the United States’ largest supplier, move their supplies elsewhere to respond to the tariffs.

Bristow, speaking to journalists late Thursday in Zambia's capital Lusaka, said that the copper price would be volatile, just like all other commodities. We will need to find a way to overcome this instability.

He said, however, that despite the fallout of U.S. policy decisions on tariffs, copper's trajectory over time remained unchanged.

Bristow stated that "we are experiencing a shortage of supply and a growing demand, particularly in the data centres and the move to cleaner energy.

He said: "So everyone agrees that the demand for copper is growing faster than the supply."

Barrick, which is the second largest gold producer in the world by output, after Newmont's, is investing to boost its copper production.

The company is implementing a $2 billion project to double the annual production of its Lumwana Copper Mine in Zambia from 140,000 metric ton to 240,000 by 2028. Barrick will extend the life of the mine to 2057.

Bristow stated that most copper companies are only interested in marginal expansion. "We're very happy that we committed to investing ahead of the tightening."

(source: Reuters)