Copper Price Drop Spurs M&A Speculation Among Cash-Strapped Miners
Falling copper prices are impacting small and mid-sized miners, leading to production cuts and a need for additional funding. Larger miners are seeking assets with longer mine life and high-quality ore to meet the demand for copper in the transition to a greener economy. The depressed prices are forcing some smaller companies to cut exploration budgets, potentially leading to more mergers and acquisitions in the sector. So far this year, over $22 billion worth of copper M&A has been launched. The difficulty in developing new copper mines and the lack of large mines available for acquisition are driving this trend.